that's on my laptop right? not on the Z? I'll look into shorewall. Why don't I want anything else on? Isn't shorewall a firewall?
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You use a firewall on your laptop to give you masquerading. 'Masquerading' is the process of 'moving' traffic from USB to your ethernet connection. What I meant by not turning anything else on is that you just leave all the firewall settings open and let all connections talk freely amonst each other, because I am assuming you have your router setup to close all unneeded ports.
On your laptop you have to have the right modules loaded to allow masquerading, and you also have to be able to load the module 'usbnet'.
On your Zaurus, you have to setup "Lan & Wifi" and USB under 'System Tools', and manually edit your resolv.conf file.