LinuxQuestions.org - IP forwarding won't work

Hello,

I want my Linux Ubuntu Server act as an internal router, so routing between two local subnets, no NAT.

This is what I have:
/etc/network/interfaces

Code:

auto eth0

iface eth0 inet static

        address 192.168.1.2

        netmask 255.255.255.0

        network 192.168.1.0

        broadcast 192.168.1.255

        gateway 192.168.1.1



auto eth1

iface eth1 inet static

        address 172.16.0.1

        netmask 255.255.0.0

        network 172.16.0.0

        broadcast 172.16.0.255

route

Code:

Destination    Gateway        Genmask        Flags Metric Ref    Use Iface

192.168.1.0    *              255.255.255.0  U    0      0        0 eth0

172.16.0.0      *              255.255.0.0    U    0      0        0 eth1

default        192.168.1.1    0.0.0.0        UG    100    0        0 eth0

I have no IPTABLES configured:

Code:

Chain INPUT (policy ACCEPT 39642 packets, 1707K bytes)

 pkts bytes target    prot opt in    out    source              destination



Chain FORWARD (policy ACCEPT 6 packets, 288 bytes)

 pkts bytes target    prot opt in    out    source              destination



Chain OUTPUT (policy ACCEPT 39796 packets, 19M bytes)

 pkts bytes target    prot opt in    out    source              destination

Output of the sudo cat /proc/sys/net/ipv4/ip_forward
1

I also configured the dhcp server to only listen on interface eth1.
When I connect my laptop to the server, I recieve following IP address:
address: 172.16.0.2
mask: 255.255.0.0
gateway: 172.16.0.1
DNS: 172.16.0.1

I can ping the eth1 interface:
ping 172.16.0.1 => success!

I ALSO can ping the eth0 interface: (still from the same laptop)
ping 192.168.1.2 => success!

But when I attached another laptop using static IP at eth0, I'm UNABLE to connect...
ping 192.168.1.5 => fail!

So apperantly, it does not forward the packets...
What am I doing wrong?

Here's a scheme:
Internet -> NAT router -> network 1 -> eth0 LINUX ROUTER eth1 -> network 2

Thanks!