It sounds to me like the firewall rules are running before the device is initialised. You using a 2.2 or 2.4 kernel. I know that 2.2 ipchains rules don't mind if the interface isn't there and will just wait until it comes up then apply the rules. You want to run your firewall script later in your boot sequence.
You say the devices work fine without the firewalling - do they not work at all now? To setup IP masquerading all you need are the following lines (assuming support is in your kernel, and you're using ipchains)
Code:
echo 1 > /proc/sys/net/ipv4/ip_forward
/sbin/ipchains -P forward DENY
/sbin/ipchains -A forward -s 192.168.1.0/24 -j MASQ
Clearly this example assumes your using a 192.168.1.* subnet, and offers no protection from incomming connections.
HTH
Jamie...