did u try any similiar to following POSTROUTING rule?
Code:
iptables -t nat -A POSTROUTING -s vpn_net/subnet -d local_net/subnet -j SNAT --to ip_of_eth_local
if it still doesnt work, do "iptables -nvL" and put the output here. also make sure the routing is on. and give us more info about your network.
good luck.