unable to reach nameservers via router, but can ping router ok?

[fowie]

This has probably been beaten to death, but I can't find anything that fits my exact situation (maybe I'm using the wrong keywords, sorry).

Server:
eth0 - external NIC, DHCP IP from ISP
eth1 - internal NIC, static 192.168.0.1

DHCP running on eth1
IPTABLES set up to masquerade on eth0

(this setup was working previously, which is why I'm puzzled).
I have a computer connected up via server's eth1. It's IP is 192.168.0.201 (/etc/init.d/networking restart) gives me a DHCPOFFER and everything, so DHCP seems to be working fine.

Server:
can access internet
I can ssh into 192.168.0.201 (even though it seems to take longer than usual)

192.168.0.201:
can ping server (well duh, I ssh'ed in from the server)
cannot access internet

for DNS on the internal NAT I'm using the same DNS servers as the router, so the server's resolv.conf:
nameserver 69.169.190.211
nameserver 208.72.160.67

and 192.168.0.201's resolv.conf:
nameserver 69.169.190.211
nameserver 208.72.160.67

ping google.com - times out
host google.com 69.169.190.211 - times out
host google.com 208.72.160.67 - times out
--more importantly,
ping 69.169.190.211 - times out
ping 208..72.160.67 - times out

what am I missing?
here's my iptables if you're curious:

# Generated by iptables-save v1.3.8 on Thu Aug 28 11:54:23 2008
*nat
:OUTPUT ACCEPT [0:0]
:PREROUTING ACCEPT [0:0]
:POSTROUTING ACCEPT [0:0]
-A POSTROUTING -o eth0 -j MASQUERADE
# Home Automation
-A POSTROUTING -o eth1 -j MASQUERADE
COMMIT
# Completed on Thu Aug 28 11:54:23 2008
# Generated by iptables-save v1.3.8 on Thu Aug 28 11:54:23 2008
*mangle
:PREROUTING ACCEPT [1149:83303]
:INPUT ACCEPT [1087:79445]
:FORWARD ACCEPT [0:0]
:OUTPUT ACCEPT [3183:4639340]
:POSTROUTING ACCEPT [3187:4640334]
COMMIT
# Completed on Thu Aug 28 11:54:23 2008
# Generated by iptables-save v1.3.8 on Thu Aug 28 11:54:23 2008
*filter
:FORWARD ACCEPT [0:0]
:INPUT DROP [0:0]
:OUTPUT ACCEPT [0:0]
# Open Ports
-A INPUT -p tcp -m tcp -m multiport -j ACCEPT --dports ssh,www,https,smtp,imap,imaps,pop3s,10000,ftp,3689
-A FORWARD -o eth1 -j LOG
-A FORWARD -i eth1 -j LOG
-A FORWARD -i eth0 -o eth1 -j ACCEPT
-A FORWARD -m state -i eth1 -o eth0 --state ESTABLISHED,RELATED -j ACCEPT
-A OUTPUT -o eth1 -j LOG
-A INPUT -i lo -j ACCEPT
# Accept traffic from internal interfaces
-A INPUT -i eth1 -j ACCEPT
# Accept traffic with the ACK flag set
-A INPUT -p tcp -m tcp --tcp-flags ACK ACK -j ACCEPT
# Allow incoming data that is part of a connection we established or related
-A INPUT -m state --state ESTABLISHED,RELATED -j ACCEPT
# Accept responses to DNS queries
-A INPUT -p udp -m udp -m multiport --dport 1024:65535 --ports 53 -j ACCEPT
# Accept traceroutes
-A INPUT -p udp -m udp --dport 33434:33523 -j ACCEPT
# Accept responses to our pings
-A INPUT -p icmp -m icmp --icmp-type echo-reply -j ACCEPT
# Accept notifications of unreachable hosts
-A INPUT -p icmp -m icmp --icmp-type destination-unreachable -j ACCEPT
# Respond to pings
-A INPUT -p icmp -m icmp --icmp-type echo-request -j ACCEPT
# Accept notifications to reduce sending speed
-A INPUT -p icmp -m icmp --icmp-type source-quench -j ACCEPT
# Accept notifications of lost packets
-A INPUT -p icmp -m icmp --icmp-type time-exceeded -j ACCEPT
# Accept notifications of protocol problems
-A INPUT -p icmp -m icmp --icmp-type parameter-problem -j ACCEPT
COMMIT
# Completed on Thu Aug 28 11:54:23 2008

[fowie]

Ok, looking at this post:
http://ubuntuforums.org/showthread.php?t=713874
I noticed that I did not have the lines in sysctl.conf as mentioned in the last post. So I did an in line

sudo sysctl -w net.ipv4.ip_forward=1

and it started working!

I've now edited sysctl.conf and added:

net.ipv4.conf.default.forwarding=1
net.ipv4.conf.all.forwarding=1

works great.