Hey Capt_Caveman...
Thanks for your help here.
To answer your earlier questions, yes to all.
Like I mentioned, I found and tweaked a few firewall scripts that I liked and seemed to provide security for what I wanted to do. I settled on one, which I will have to remember where I got it from (I think Netfilters site), but it gave a lot of information to me just by reading it often.
When I made my first post, I dumped iptables completely and started adding my own settings one at a time and checking results.
The problem was that on the LAN machines, I had the DNS entries set to the host/ip of the ROUTER. After I changed one machine's DNS to carry the host/ip of my ISP, I was able to get out to the Internet.
So I just want to say 'WOW, I GOT IT!'
Everything is working fine, including external access via vsftpd and telnet. I will now lock them down somewhat to provide better security. I want those abilities although I think most would call it a 'not bad, but not great, idea'.
I WANT TO THANK THIS SITE and EVERYONE HERE TREMENDOUSLY.