you have two options
1) use IP MASQUERADE only to share you interenet connection
2) use ip masquerade + tranparent proxing using squid, yeah squid is the best cache/proxy package for linux/unix
okay in first case you have to put do someting like this
echo 1 > /proc/sys/net/ipv4/ip_forward (this is enable forwarding)
iptables -t nat -A POSTROUTING -o ppp0 -s 192.168.0.0/24 -d 0/0 -j MASQUERADE
( this will enable MASQ "interent connection sharing for you local LAN thourgh your this redhat box, don't forget to replace -o ppp0 with your EXT interface may be you have eth0 to internet
.
put this two lines in any of your start script hmm rc.local (i don't remember what is this called on rd coz i don't use rd however check in /etc/rc.d/ directory file with the name "local" in it.
now im sure you could configure you windows client yourself
Okay the second option is kinda cool and good see "squid" will give you local cache and this will gives your clients fast Internet contents
however im not going to teach you howto setup squid "tranparently" however there are lot of howtos avaible online just point you browser to google.com and type something like "squid howto" or "squid tranparent proxing" , etc
regards