This is standard in the 2.6 series and I believe it was in 2.4, too.
Use any of the selection tools to limit the area filtered. I've had the best luck using the ellipse selection tool; others like the magic wand, but I could never get it to pick just the right area.
After you've select the eye or face, right click in the selection and choose Filters -> Enhance -> Red Eye Removal. Play around with the threshold. Unfortunately I could not see a way to make the preview zoom out to get a better view before clicking Okay. But thus Undo.
See Filters -> Enhance -> Red Eye Removal