From the shorewall website
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What is it?
The Shoreline Firewall, more commonly known as "Shorewall", is a Netfilter (iptables) based firewall that can be used on a dedicated firewall system, a multi-function gateway/router/server or on a standalone GNU/Linux system.
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IPTables is the software that is truly the firewall. Shorewall is an application or script that makes it easier to use iptables (iptables is somewhat cryptic and non intuitive for the n00b) For a dedicated firewall box I suggest smoothwall or ipcop.
both will do what you want with a nice webbased interface making it a cinch. Hopefully this cleared up some misconceptions.
Links
www.smoothwall.org
http://www.ipcop.org
btw - learning iptables is good. It will make you appreciate the work that people put into tools like smoothwall and ipcop.