DHCP server setup between two NIC's

I would help setting up a DHCP server (softwaredaemon), please.

the internet connection is via WI-FI, I don't have access to the WI-FI
router. the WI-FI adapter plugs into eth0 of the computer and the hub
plugs into eth1 of the computer.

internet-->router-->wireless signal-->asus network adapter-->eth0

eth1-->hub-->PAP2-->telephone


I haven't set up masquerading, which, I believe, is required. I have
crossover cable to use instead of the hub, too. the crossover cable
could go from eth1 to the PAP2. of course, the phone plugs into the
PAP2.

the internet connection is from
<http://usa.asus.com/products/communication/wireless/wl-330g/overview.htm>
into eth0 and a hub is plugged into eth1, then a linksys PAP2
<http://www.linksys.com/products/product.asp?prid=651&scid=38> into the
hub.

I'm not sure what questions to ask. I know masquerading is required.
I've tried the asus network adapter in both NIC's, eth0 and eth1, so I
know that the NIC's work enough to provide the internet. I know that
the the two NIC's need to talk, beyond that it's a bit fuzzy.

the first step is to set up the DHCP server? two different networks
which need to "talk," right? kinda like a gateway?


thanks,

Thufir