Thanx fouldsy for the reply....
I just got it work
.... i dug around and found that i didn't add a "GATEWAYDEV=eth1" to /etc/sysconfig/network. The reply posted below was posted earlier, but any recommendations regarding the firewall rules would be very welcome...
I checked iptables again.... the rules i have are as follows (couldn't post the output directly from that machine, sorry):
1. Filter (Default DROP policy):
1.1.1 Allow ALL traffic into loopback
1.1.2 Allow ALL traffic if source & destination are on the local network
1.1.3 Allow traffic from ppp0 if state is RELATED, ESTABLISHED
1.1.4 Allow TCP SYN traffic from ppp0 on the following ports (21; 22; 25; 80; 110; 443)
1.2.1 Allow ALL traffic from eth0 to ppp0
1.2.2 Allow traffic from ppp0 to anywhere if state is RELATED, ESTABLISHED
1.3.1 Allow ALL traffic out loopback
1.3.2 Allow ALL traffic if source & destination are on the local network
1.3.3 Allow ALL traffic out ppp0
2. NAT Table: (Default ACCEPT policy)
2.2.1 MASQUERADE all traffic coming in from anywhere and going out ppp0 if the source is on the local network.
3. MANGLE (Default ACCEPT policy)
edit: Also checked that ipv4 forwarding is on, could it be i need to modprobe something for iptables (got ip_conntrack & ip_conntrack_ftp)?
[PREVIOUS REPLY END]