ok after a lot of trial and error, i figured out i really don't need iptables rules. all i needed was the first line that pingu_penguin provided:
Code:
echo '1' > /proc/sys/net/ipv4/ip_forward
and of course a correct configuration of dhcpd.conf since my clients are dhcp clients.
btw, i am running ubuntu 7.10
thanks for everyone's help