I think you will also need to set up some routes here. Your linux box needs to know where to send packets to networks it does not know about.
ip route add 0.0.0.0/24 via 192.168.1.1
Where 192.168.1.1 is the ip of your gateway. This basically says send anything you don't know about to 192.168.1.1 and let him
worry about it. Then it needs a return route....I think. Maybe someone else can help
Also, I think you will need to turn on packet forwarding. In redhat it's:
echo 1 > /proc/sys/net/ipv4/ip_forward
These are just some hints, it took me a long time to get these right on my network, but I had 4 routers and WAN's involved. Never actually done it for just one router.