diff --git a/content/base/src/nsDocument.cpp b/content/base/src/nsDocument.cpp
index acd8f89d66dd..d9babf897b79 100644
--- a/content/base/src/nsDocument.cpp
+++ b/content/base/src/nsDocument.cpp
@@ -73,6 +73,7 @@
 
 #include "nsGUIEvent.h"
 #include "nsAsyncDOMEvent.h"
+#include "nsIDOMNodeFilter.h"
 
 #include "nsIDOMStyleSheet.h"
 #include "nsDOMAttribute.h"
@@ -5024,11 +5025,15 @@ NS_IMETHODIMP
 nsDocument::CreateNodeIterator(nsIDOMNode *aRoot,
                                PRUint32 aWhatToShow,
                                nsIDOMNodeFilter *aFilter,
-                               bool aEntityReferenceExpansion,
+                               PRUint8 aOptionalArgc,
                                nsIDOMNodeIterator **_retval)
 {
   *_retval = nsnull;
 
+  if (!aOptionalArgc) {
+    aWhatToShow = nsIDOMNodeFilter::SHOW_ALL;
+  }
+
   if (!aRoot)
     return NS_ERROR_DOM_NOT_SUPPORTED_ERR;
 
@@ -5042,24 +5047,27 @@ nsDocument::CreateNodeIterator(nsIDOMNode *aRoot,
 
   nsNodeIterator *iterator = new nsNodeIterator(root,
                                                 aWhatToShow,
-                                                aFilter,
-                                                aEntityReferenceExpansion);
+                                                aFilter);
   NS_ENSURE_TRUE(iterator, NS_ERROR_OUT_OF_MEMORY);
 
   NS_ADDREF(*_retval = iterator);
 
-  return NS_OK; 
+  return NS_OK;
 }
 
 NS_IMETHODIMP
 nsDocument::CreateTreeWalker(nsIDOMNode *aRoot,
                              PRUint32 aWhatToShow,
                              nsIDOMNodeFilter *aFilter,
-                             bool aEntityReferenceExpansion,
+                             PRUint8 aOptionalArgc,
                              nsIDOMTreeWalker **_retval)
 {
   *_retval = nsnull;
 
+  if (!aOptionalArgc) {
+    aWhatToShow = nsIDOMNodeFilter::SHOW_ALL;
+  }
+
   if (!aRoot)
     return NS_ERROR_DOM_NOT_SUPPORTED_ERR;
 
@@ -5073,8 +5081,7 @@ nsDocument::CreateTreeWalker(nsIDOMNode *aRoot,
 
   nsTreeWalker* walker = new nsTreeWalker(root,
                                           aWhatToShow,
-                                          aFilter,
-                                          aEntityReferenceExpansion);
+                                          aFilter);
   NS_ENSURE_TRUE(walker, NS_ERROR_OUT_OF_MEMORY);
 
   NS_ADDREF(*_retval = walker);
diff --git a/content/base/src/nsNodeIterator.cpp b/content/base/src/nsNodeIterator.cpp
index 68ed0384dba0..40191cf530de 100644
--- a/content/base/src/nsNodeIterator.cpp
+++ b/content/base/src/nsNodeIterator.cpp
@@ -170,9 +170,8 @@ void nsNodeIterator::NodePointer::MoveBackward(nsINode *aParent, nsINode *aNode)
 
 nsNodeIterator::nsNodeIterator(nsINode *aRoot,
                                PRUint32 aWhatToShow,
-                               nsIDOMNodeFilter *aFilter,
-                               bool aExpandEntityReferences) :
-    nsTraversal(aRoot, aWhatToShow, aFilter, aExpandEntityReferences),
+                               nsIDOMNodeFilter *aFilter) :
+    nsTraversal(aRoot, aWhatToShow, aFilter),
     mDetached(false),
     mPointer(mRoot, true)
 {
@@ -247,7 +246,7 @@ NS_IMETHODIMP nsNodeIterator::GetFilter(nsIDOMNodeFilter **aFilter)
 /* readonly attribute boolean expandEntityReferences; */
 NS_IMETHODIMP nsNodeIterator::GetExpandEntityReferences(bool *aExpandEntityReferences)
 {
-    *aExpandEntityReferences = mExpandEntityReferences;
+    *aExpandEntityReferences = false;
     return NS_OK;
 }
 
diff --git a/content/base/src/nsNodeIterator.h b/content/base/src/nsNodeIterator.h
index 9447f0ce9b0d..0aeda841df8d 100644
--- a/content/base/src/nsNodeIterator.h
+++ b/content/base/src/nsNodeIterator.h
@@ -63,8 +63,7 @@ public:
 
     nsNodeIterator(nsINode *aRoot,
                    PRUint32 aWhatToShow,
-                   nsIDOMNodeFilter *aFilter,
-                   bool aExpandEntityReferences);
+                   nsIDOMNodeFilter *aFilter);
     virtual ~nsNodeIterator();
 
     NS_DECL_NSIMUTATIONOBSERVER_CONTENTREMOVED
diff --git a/content/base/src/nsTraversal.cpp b/content/base/src/nsTraversal.cpp
index df9f2ce61280..83f0905fcc6c 100644
--- a/content/base/src/nsTraversal.cpp
+++ b/content/base/src/nsTraversal.cpp
@@ -49,12 +49,10 @@
 
 nsTraversal::nsTraversal(nsINode *aRoot,
                          PRUint32 aWhatToShow,
-                         nsIDOMNodeFilter *aFilter,
-                         bool aExpandEntityReferences) :
+                         nsIDOMNodeFilter *aFilter) :
     mRoot(aRoot),
     mWhatToShow(aWhatToShow),
     mFilter(aFilter),
-    mExpandEntityReferences(aExpandEntityReferences),
     mInAcceptNode(false)
 {
     NS_ASSERTION(aRoot, "invalid root in call to nsTraversal constructor");
diff --git a/content/base/src/nsTraversal.h b/content/base/src/nsTraversal.h
index 9368941e4994..77968bffa7ba 100644
--- a/content/base/src/nsTraversal.h
+++ b/content/base/src/nsTraversal.h
@@ -54,15 +54,13 @@ class nsTraversal
 public:
     nsTraversal(nsINode *aRoot,
                 PRUint32 aWhatToShow,
-                nsIDOMNodeFilter *aFilter,
-                bool aExpandEntityReferences);
+                nsIDOMNodeFilter *aFilter);
     virtual ~nsTraversal();
 
 protected:
     nsCOMPtr<nsINode> mRoot;
     PRUint32 mWhatToShow;
     nsCOMPtr<nsIDOMNodeFilter> mFilter;
-    bool mExpandEntityReferences;
     bool mInAcceptNode;
 
     /*
diff --git a/content/base/src/nsTreeWalker.cpp b/content/base/src/nsTreeWalker.cpp
index d7c4527c1f37..9abd2189455c 100644
--- a/content/base/src/nsTreeWalker.cpp
+++ b/content/base/src/nsTreeWalker.cpp
@@ -58,9 +58,8 @@
 
 nsTreeWalker::nsTreeWalker(nsINode *aRoot,
                            PRUint32 aWhatToShow,
-                           nsIDOMNodeFilter *aFilter,
-                           bool aExpandEntityReferences) :
-    nsTraversal(aRoot, aWhatToShow, aFilter, aExpandEntityReferences),
+                           nsIDOMNodeFilter *aFilter) :
+    nsTraversal(aRoot, aWhatToShow, aFilter),
     mCurrentNode(aRoot)
 {
 }
@@ -127,7 +126,7 @@ NS_IMETHODIMP nsTreeWalker::GetFilter(nsIDOMNodeFilter * *aFilter)
 NS_IMETHODIMP
 nsTreeWalker::GetExpandEntityReferences(bool *aExpandEntityReferences)
 {
-    *aExpandEntityReferences = mExpandEntityReferences;
+    *aExpandEntityReferences = false;
     return NS_OK;
 }
 
diff --git a/content/base/src/nsTreeWalker.h b/content/base/src/nsTreeWalker.h
index bafd07028cb4..c9ceec5f0115 100644
--- a/content/base/src/nsTreeWalker.h
+++ b/content/base/src/nsTreeWalker.h
@@ -63,8 +63,7 @@ public:
 
     nsTreeWalker(nsINode *aRoot,
                  PRUint32 aWhatToShow,
-                 nsIDOMNodeFilter *aFilter,
-                 bool aExpandEntityReferences);
+                 nsIDOMNodeFilter *aFilter);
     virtual ~nsTreeWalker();
 
     NS_DECL_CYCLE_COLLECTION_CLASS(nsTreeWalker)
diff --git a/content/base/test/Makefile.in b/content/base/test/Makefile.in
index afd5c806f78a..919256a3a79d 100644
--- a/content/base/test/Makefile.in
+++ b/content/base/test/Makefile.in
@@ -542,6 +542,7 @@ _TEST_FILES2 = \
 		test_bug708620.html \
 		file_bug708620.html \
 		file_bug708620-2.html \
+		test_bug698384.html \
 		$(NULL)
 
 _CHROME_FILES =	\
diff --git a/content/base/test/test_bug698384.html b/content/base/test/test_bug698384.html
new file mode 100644
index 000000000000..f55a5f7f9883
--- /dev/null
+++ b/content/base/test/test_bug698384.html
@@ -0,0 +1,62 @@
+<!DOCTYPE HTML>
+<html>
+  <!--
+    https://bugzilla.mozilla.org/show_bug.cgi?id=698384
+  -->
+  <head>
+    <title>Test for Bug 698384</title>
+    <script type="text/javascript"
+      src="/tests/SimpleTest/SimpleTest.js"></script>
+    <script src="/tests/SimpleTest/EventUtils.js"
+      type="text/javascript"></script>
+    <link rel="stylesheet" type="text/css"
+      href="/tests/SimpleTest/test.css" />
+  </head>
+  <body onload="runTests();">
+    <a target="_blank"
+      href="https://bugzilla.mozilla.org/show_bug.cgi?id=698384">
+      Mozilla Bug 698384</a>
+    <p id="display"></p>
+    <div id="content" style="display: none"></div>
+    <pre id="test">
+      <script type="text/javascript">
+        /*
+          Checks to see if default parameter handling is correct when 0, 1
+          or 2 parameters are passed.
+
+          If one is only passed, aFilter should default to null
+          If none are passed, aFilter should be null and aWhatToShow should
+          be NodeFilter.SHOW_ALL
+        */
+        SimpleTest.waitForExplicitFinish();
+
+        var content = $('content'),
+            ni;
+
+        content.innerHTML = ('<span id="A"><\/span><span id="B"><\/span>'
+          + '<span id="C"><\/span>');
+
+        function runTests() {
+
+          // Test NodeIterator when no optional arguments are given
+          ni = document.createNodeIterator(content);
+          is(ni.whatToShow, NodeFilter.SHOW_ALL, "whatToShow should be " +
+            "NodeFilter.SHOW_ALL when both " +
+            " optionals are not given");
+          is(ni.filter, null, "filter should be defaulted to null when both " +
+            " optionals are not given");
+
+          // Test NodeIterator when first optional is passed
+          ni = document.createNodeIterator(content, NodeFilter.SHOW_ELEMENT);
+          is(ni.filter, null, "filter should be defaulted to null when only " +
+            " first argument is passed");
+          is(ni.whatToShow, NodeFilter.SHOW_ELEMENT, "whatToShow should " +
+            "properly be set to NodeFilter.SHOW_ELEMENT when whatToShow is " +
+            "provided and filter is not");
+
+          SimpleTest.finish();
+        }
+      </script>
+    </pre>
+  </body>
+</html>
diff --git a/dom/interfaces/core/nsIDOMDocument.idl b/dom/interfaces/core/nsIDOMDocument.idl
index 947655c1233b..6206158fdfdf 100644
--- a/dom/interfaces/core/nsIDOMDocument.idl
+++ b/dom/interfaces/core/nsIDOMDocument.idl
@@ -66,7 +66,7 @@ interface nsIDOMLocation;
  * http://dvcs.w3.org/hg/domcore/raw-file/tip/Overview.html
  */
 
-[scriptable, uuid(5c3bff4d-ae7f-4c93-948c-519589672c30)]
+[scriptable, uuid(d7cdd08e-1bfd-4bc3-9742-d66586781ee2)]
 interface nsIDOMDocument : nsIDOMNode
 {
   readonly attribute nsIDOMDocumentType         doctype;
@@ -118,16 +118,14 @@ interface nsIDOMDocument : nsIDOMNode
    */
   nsIDOMRange              createRange();
 
-  nsIDOMNodeIterator createNodeIterator(in nsIDOMNode root,
-                                        in unsigned long whatToShow,
-                                        in nsIDOMNodeFilter filter,
-                                        in boolean entityReferenceExpansion)
-                                        raises(DOMException);
-  nsIDOMTreeWalker   createTreeWalker(in nsIDOMNode root,
-                                      in unsigned long whatToShow,
-                                      in nsIDOMNodeFilter filter,
-                                      in boolean entityReferenceExpansion)
-                                        raises(DOMException);
+  [optional_argc] nsIDOMNodeIterator createNodeIterator(in nsIDOMNode root,
+                                                        [optional] in unsigned long whatToShow,
+                                                        [optional] in nsIDOMNodeFilter filter)
+                                                          raises(DOMException);
+  [optional_argc] nsIDOMTreeWalker   createTreeWalker(in nsIDOMNode root,
+                                                      [optional] in unsigned long whatToShow,
+                                                      [optional] in nsIDOMNodeFilter filter)
+                                                        raises(DOMException);
 
   nsIDOMEvent               createEvent(in DOMString eventType)
                                                raises(DOMException);
diff --git a/dom/interfaces/traversal/nsIDOMDocumentTraversal.idl b/dom/interfaces/traversal/nsIDOMDocumentTraversal.idl
deleted file mode 100644
index ddb7ce3af2c0..000000000000
--- a/dom/interfaces/traversal/nsIDOMDocumentTraversal.idl
+++ /dev/null
@@ -1,61 +0,0 @@
-/* -*- Mode: IDL; tab-width: 2; indent-tabs-mode: nil; c-basic-offset: 2 -*-
- *
- * ***** BEGIN LICENSE BLOCK *****
- * Version: MPL 1.1/GPL 2.0/LGPL 2.1
- *
- * The contents of this file are subject to the Mozilla Public License Version
- * 1.1 (the "License"); you may not use this file except in compliance with
- * the License. You may obtain a copy of the License at
- * http://www.mozilla.org/MPL/
- *
- * Software distributed under the License is distributed on an "AS IS" basis,
- * WITHOUT WARRANTY OF ANY KIND, either express or implied. See the License
- * for the specific language governing rights and limitations under the
- * License.
- *
- * The Original Code is this file as it was released on May 1 2001.
- *
- * The Initial Developer of the Original Code is
- * Jonas Sicking.
- * Portions created by the Initial Developer are Copyright (C) 2001
- * the Initial Developer. All Rights Reserved.
- *
- * Contributor(s):
- *   Jonas Sicking <sicking@bigfoot.com> (Original Author)
- *
- * Alternatively, the contents of this file may be used under the terms of
- * either of the GNU General Public License Version 2 or later (the "GPL"),
- * or the GNU Lesser General Public License Version 2.1 or later (the "LGPL"),
- * in which case the provisions of the GPL or the LGPL are applicable instead
- * of those above. If you wish to allow use of your version of this file only
- * under the terms of either the GPL or the LGPL, and not to allow others to
- * use your version of this file under the terms of the MPL, indicate your
- * decision by deleting the provisions above and replace them with the notice
- * and other provisions required by the GPL or the LGPL. If you do not delete
- * the provisions above, a recipient may use your version of this file under
- * the terms of any one of the MPL, the GPL or the LGPL.
- *
- * ***** END LICENSE BLOCK ***** */
-
-#include "domstubs.idl"
-
-interface nsIDOMNodeIterator;
-interface nsIDOMNodeFilter;
-interface nsIDOMTreeWalker;
-
-
-[scriptable, uuid(13f236c0-47f8-11d5-b6a3-009027446e84)]
-// Introduced in DOM Level 2:
-interface nsIDOMDocumentTraversal : nsISupports
-{
-  nsIDOMNodeIterator createNodeIterator(in nsIDOMNode root,
-                                        in unsigned long whatToShow,
-                                        in nsIDOMNodeFilter filter,
-                                        in boolean entityReferenceExpansion)
-                                        raises(DOMException);
-  nsIDOMTreeWalker   createTreeWalker(in nsIDOMNode root,
-                                      in unsigned long whatToShow,
-                                      in nsIDOMNodeFilter filter,
-                                      in boolean entityReferenceExpansion)
-                                        raises(DOMException);
-};
diff --git a/dom/interfaces/traversal/nsIDOMNodeIterator.idl b/dom/interfaces/traversal/nsIDOMNodeIterator.idl
index 3cf093660385..12aa9e4c6dcd 100644
--- a/dom/interfaces/traversal/nsIDOMNodeIterator.idl
+++ b/dom/interfaces/traversal/nsIDOMNodeIterator.idl
@@ -44,7 +44,7 @@ interface nsIDOMNodeFilter;
 
 
 [scriptable, uuid(5af83f50-c8d5-4824-be29-1aa9d640bacb)]
-// Introduced in DOM Level 2:
+// Introduced in DOM Level 2, updated to DOM Level 4:
 interface nsIDOMNodeIterator : nsISupports
 {
   readonly attribute nsIDOMNode       root;
diff --git a/editor/libeditor/text/nsTextEditRules.cpp b/editor/libeditor/text/nsTextEditRules.cpp
index 9180ad2a60a8..bce62281e84e 100644
--- a/editor/libeditor/text/nsTextEditRules.cpp
+++ b/editor/libeditor/text/nsTextEditRules.cpp
@@ -486,7 +486,7 @@ GetTextNode(nsISelection *selection, nsEditor *editor) {
     // if node is null, return it to indicate there's no text
     NS_ENSURE_TRUE(node, nsnull);
     // This should be the root node, walk the tree looking for text nodes
-    nsNodeIterator iter(node, nsIDOMNodeFilter::SHOW_TEXT, nsnull, true);
+    nsNodeIterator iter(node, nsIDOMNodeFilter::SHOW_TEXT, nsnull);
     while (!editor->IsTextNode(selNode)) {
       if (NS_FAILED(res = iter.NextNode(getter_AddRefs(selNode))) || !selNode) {
         return nsnull;