/sbin/iptables -P INPUT ACCEPT
Well for starters, with this default rule, you really don't have a firewall. Usually the best thing to do is set all your defaults to DROP and then start accepting packets you want. One of the better ways you can do this on the INPUT chain is to use state matching
iptables -A INPUT -i eth0 -p tcp -m state --state ESTABLISHED,RELATED -j ACCEPT
That will allow packets that are sent in response to requests from within your machine. On the output side you should have something like
iptables -A OUTPUT -p tcp -m state --state NEW,ESTABLISHED,RELATED -j ACCEPT
That will allow your programs to send packets.
You also need to allow access to the loopback device
iptables -A INPUT -i lo -j ACCEPT
By the way, I know you are anxious for an answer, but it is accepted practice here to wait 24 hours before bumping your post.