Before you start from scratch !
Please ascertain that your ADSL is working fine & configure the web interface to do you PPPOE'ing / authenticate & try to browse. Using your eth0 , as this is your default net. device.
add a default route pointed to the netcomm router to "get outside".
Trying to use your Linux Box to perform routing tasks and authenticate whilst trying to forward DNS requests ,can all be a difficult procedure all at once to actually pinpoint your real problem here.
keep hope you'll get there :)
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