DEVICE=eth1
IPADDR=192.168.0.1
NETMASK=255.255.255.0
NETWORK=192.168.0.0
BROADCAST=192.168.0.255
ONBOOT=yes

DEVICE=eth0
BOOTPROTO=dhcp
ONBOOT=yes

IP addresss  : 192.168.0.2
Sub netmask  : 255.255.255.0
Default Gateway: 192.168.0.1
Preferred DNS server : XXX.XXX.XXX.XXX
Alternate DNS server : YYY.YYY.YYY.YYY

iptables --flush
iptables --table nat --flush
iptables --delete-chain
iptables --table nat --delete-chain

iptables --table nat --append POSTROUTING --out-interface eth0 -j MASQUERADE
iptables --append FORWARD --in-interface  eth1 -j ACCEPT
echo 1 > /proc/sys/net/ipv4/ip_forward

• Network cards on linux server must be started before the IP Masquerading script is run. If you restart your network, content of /proc/sys/net/ipv4/ip_forward will be reset to 0.
• If Windows 2000 machine can ping Yahoo's IP address but not Yahoo URL(www.yahoo.com), most likely you forget to set your DNS on Windows 2000 machine.
• If you cannot ping outsite IP from Windows 2000 machine, most likely your IP Masquerading on Linux server does not work properly. Try to flush all the chains with command "iptables -F INPUT", "iptables -F FORWARD" and "iptables -F OUTPUT". Then rerun your IP Masquerading script again.
• Always check the content of /proc/sys/net/ipv4/ip_forward. If it is 0, it means no forwarding. You need to change it to 1.
• I don't have to do route add in my setting as shown in the yolinux tutorial. As long as it works, I am happy.

#!/bin/sh
#/etc/rc.d/rc.local
# This script will be executed *after* all the other init scripts.
# You can put your own initialization stuff in here if you don't
# want to do the full Sys V style init stuff.

touch /var/lock/subsys/local

echo "Loading the rc.firewall ruleset.. "
/etc/rc.d/rc.firewall

===============================================================
#!/bin/sh
#
# rc.firewall-2.4
FWVER=0.63
#
#               Initial SIMPLE IP Masquerade test for 2.4.x kernels
#               using IPTABLES.  
#
#               Once IP Masquerading has been tested, with this simple 
#               ruleset, it is highly recommended to use a stronger 
#               IPTABLES ruleset either given later in this HOWTO or 
#               from another reputable resource.
#
#
#
# Log:
#       0.63 - Added support for the IRC IPTABLES module
#       0.62 - Fixed a typo on the MASQ enable line that used eth0
#              instead of $EXTIF
#       0.61 - Changed the firewall to use variables for the internal
#              and external interfaces.
#       0.60 - 0.50 had a mistake where the ruleset had a rule to DROP
#              all forwarded packets but it didn't have a rule to ACCEPT
#              any packets to be forwarded either
#            - Load the ip_nat_ftp and ip_conntrack_ftp modules by default
#       0.50 - Initial draft
#

echo -e "\n\nLoading simple rc.firewall version $FWVER..\n"


# The location of the 'iptables' program
#
#   If your Linux distribution came with a copy of iptables, most
#   likely it is located in /sbin.  If you manually compiled 
#   iptables, the default location is in /usr/local/sbin
#
# ** Please use the "whereis iptables" command to figure out 
# ** where your copy is and change the path below to reflect 
# ** your setup
#
IPTABLES=/sbin/iptables
#IPTABLES=/usr/local/sbin/iptables


#Setting the EXTERNAL and INTERNAL interfaces for the network
#
#  Each IP Masquerade network needs to have at least one
#  external and one internal network.  The external network
#  is where the natting will occur and the internal network
#  should preferably be addressed with a RFC1918 private address
#  scheme.
#
#  For this example, "eth0" is external and "eth1" is internal"
#
#  NOTE:  If this doesnt EXACTLY fit your configuration, you must 
#         change the EXTIF or INTIF variables above. For example: 
#
#               EXTIF="ppp0" 
#
#            if you are a modem user.
#
EXTIF="eth0"
INTIF="eth1"
echo "   External Interface:  $EXTIF"
echo "   Internal Interface:  $INTIF"


#======================================================================
#== No editing beyond this line is required for initial MASQ testing ==


echo -en "   loading modules: "

# Need to verify that all modules have all required dependencies
#
echo "  - Verifying that all kernel modules are ok"
/sbin/depmod -a

# With the new IPTABLES code, the core MASQ functionality is now either
# modular or compiled into the kernel.  This HOWTO shows ALL IPTABLES
# options as MODULES.  If your kernel is compiled correctly, there is
# NO need to load the kernel modules manually.  
#
#  NOTE: The following items are listed ONLY for informational reasons.
#        There is no reason to manual load these modules unless your
#        kernel is either mis-configured or you intentionally disabled
#        the kernel module autoloader.
#

# Upon the commands of starting up IP Masq on the server, the
# following kernel modules will be automatically loaded:
#
# NOTE:  Only load the IP MASQ modules you need.  All current IP MASQ 
#        modules are shown below but are commented out from loading.
# ===============================================================

#Load the main body of the IPTABLES module - "iptable"
#  - Loaded automatically when the "iptables" command is invoked
#
#  - Loaded manually to clean up kernel auto-loading timing issues
#
echo -en "ip_tables, "
/sbin/insmod ip_tables


#Load the IPTABLES filtering module - "iptable_filter" 
#  - Loaded automatically when filter policies are activated


#Load the stateful connection tracking framework - "ip_conntrack"
#
# The conntrack  module in itself does nothing without other specific 
# conntrack modules being loaded afterwards such as the "ip_conntrack_ftp"
# module
#
#  - This module is loaded automatically when MASQ functionality is 
#    enabled 
#
#  - Loaded manually to clean up kernel auto-loading timing issues
#
echo -en "ip_conntrack, "
/sbin/insmod ip_conntrack


#Load the FTP tracking mechanism for full FTP tracking
#
# Enabled by default -- insert a "#" on the next line to deactivate
#
echo -en "ip_conntrack_ftp, "
/sbin/insmod ip_conntrack_ftp


#Load the IRC tracking mechanism for full IRC tracking
#
# Enabled by default -- insert a "#" on the next line to deactivate
#
echo -en "ip_conntrack_irc, "
/sbin/insmod ip_conntrack_irc


#Load the general IPTABLES NAT code - "iptable_nat"
#  - Loaded automatically when MASQ functionality is turned on
# 
#  - Loaded manually to clean up kernel auto-loading timing issues
#
echo -en "iptable_nat, "
/sbin/insmod iptable_nat


#Loads the FTP NAT functionality into the core IPTABLES code
# Required to support non-PASV FTP.
#
# Enabled by default -- insert a "#" on the next line to deactivate
#
echo -en "ip_nat_ftp, "
/sbin/insmod ip_nat_ftp


# Just to be complete, here is a list of the remaining kernel modules 
# and their function.  Please note that several modules should be only
# loaded by the correct master kernel module for proper operation.
# --------------------------------------------------------------------
#
#    ipt_mark       - this target marks a given packet for future action.
#                     This automatically loads the ipt_MARK module
#
#    ipt_tcpmss     - this target allows to manipulate the TCP MSS
#                     option for braindead remote firewalls.
#                     This automatically loads the ipt_TCPMSS module
#
#    ipt_limit      - this target allows for packets to be limited to
#                     to many hits per sec/min/hr
#
#    ipt_multiport  - this match allows for targets within a range
#                     of port numbers vs. listing each port individually
#
#    ipt_state      - this match allows to catch packets with various
#                     IP and TCP flags set/unset
#
#    ipt_unclean    - this match allows to catch packets that have invalid
#                     IP/TCP flags set
#
#    iptable_filter - this module allows for packets to be DROPped, 
#                     REJECTed, or LOGged.  This module automatically 
#                     loads the following modules:
#
#                     ipt_LOG - this target allows for packets to be 
#                               logged
#
#                     ipt_REJECT - this target DROPs the packet and returns 
#                                  a configurable ICMP packet back to the 
#                                  sender.
# 
#    iptable_mangle - this target allows for packets to be manipulated
#                     for things like the TCPMSS option, etc.

echo ".  Done loading modules."



#CRITICAL:  Enable IP forwarding since it is disabled by default since
#
#           Redhat Users:  you may try changing the options in
#                          /etc/sysconfig/network from:
#
#                       FORWARD_IPV4=false
#                             to
#                       FORWARD_IPV4=true
#
echo "   enabling forwarding.."
echo "1" > /proc/sys/net/ipv4/ip_forward


# Dynamic IP users:
#
#   If you get your IP address dynamically from SLIP, PPP, or DHCP, 
#   enable this following option.  This enables dynamic-address hacking
#   which makes the life with Diald and similar programs much easier.
#
echo "   enabling DynamicAddr.."
echo "1" > /proc/sys/net/ipv4/ip_dynaddr


# Enable simple IP forwarding and Masquerading
#
#  NOTE:  In IPTABLES speak, IP Masquerading is a form of SourceNAT or SNAT.
#
#  NOTE #2:  The following is an example for an internal LAN address in the
#            192.168.0.x network with a 255.255.255.0 or a "24" bit subnet mask
#            connecting to the Internet on external interface "eth0".  This
#            example will MASQ internal traffic out to the Internet but not
#            allow non-initiated traffic into your internal network.
#
#            
#         ** Please change the above network numbers, subnet mask, and your 
#         *** Internet connection interface name to match your setup
#         


#Clearing any previous configuration
#
#  Unless specified, the defaults for INPUT and OUTPUT is ACCEPT
#    The default for FORWARD is DROP
#
echo "   clearing any existing rules and setting default policy.."
$IPTABLES -P INPUT ACCEPT
$IPTABLES -F INPUT 
$IPTABLES -P OUTPUT ACCEPT
$IPTABLES -F OUTPUT 
$IPTABLES -P FORWARD DROP
$IPTABLES -F FORWARD 
$IPTABLES -t nat -F

echo "   FWD: Allow all connections OUT and only existing and related ones IN"
$IPTABLES -A FORWARD -i $EXTIF -o $INTIF -m state --state ESTABLISHED,RELATED -j ACCEPT
$IPTABLES -A FORWARD -i $INTIF -o $EXTIF -j ACCEPT
$IPTABLES -A FORWARD -j LOG

echo "   Enabling SNAT (MASQUERADE) functionality on $EXTIF"
$IPTABLES -t nat -A POSTROUTING -o $EXTIF -j MASQUERADE

echo -e "\nrc.firewall-2.4 v$FWVER done.\n"