Are you sure you have that allowed in kernel? taken from linux-2.4.27 Documentation/Configure.help Local NAT support CONFIG_IP_NF_NAT_LOCAL This option enables support for NAT of locally originated connections. Enable this if you need to use destination NAT on connections originating from local processes on the nat box itself. Please note that you will need a recent version (>= 1.2.6a) of the iptables userspace program in order to use this feature. See <http://www.iptables.org/> for download instructions. If unsure, say 'N'.
