Sounds like you wish to setup a firewall/gateway router linux box.
Do as follows.
Setup eth0 to connect to the internet. Does the machine get on the internet? If so continue.
Now setup eth1 for lan side. Set IP to 192.168.1.1 and netmask/subnet to 255.255.255.0. Do not set a gateway on eth1. Masquerading handles this for you.
Goto
http://easyfwgen.morizot.net/gen/ and answer the questions to build your fireall script. Once generated save to a file say in /etc called /etc/firewall.sh and make it executable ' chmod +x /etc/firewall.sh '.
Run the script. ' ./firewall.sh '
Goto lan machines and set ip to say 192.168.1.2, netmask 255.255.255.0, and gateway 192.168.1.1 and set dns IP provided by ISP.
Brian