Iptables – OpenVPN – client sees the server AND the LAN, but not the Internet

I have the following OpenVPN setup:

Client(android OpenVPN client) <-> internet <-> VPN server (linux) <-> LAN

VPN server has eth0 (visible on the open internet) and eth1 (part of the local, firewalled LAN, 192.168.1.0/24). I used the "NAT hack" to make computers in the local LAN visible to the client, using the following:

iptables -t nat -I POSTROUTING -s 10.8.0.0/24 -o eth1 -j MASQUERADE

since I don't have access to the DHCP server which pushes IP configuration to majority of the computers in the LAN.

Now I have the following situation:

• Client connects to server without problems
• Configuration gets pushed to the client
• I can see the computers in the local LAN (this seems to be the difference with solutions I could find – all other questions dealt with the absence of the "NAT hack" – I have that sorted out!)
• But I don't have access to the internet

The configuration that is pushed from the server to the client is:

'PUSH_REPLY,redirect-gateway autolocal bypass-dhcp,dhcp-option DNS 8.8.8.8,dhcp-option DNS 8.8.4.4,redirect-gateway defl,route 10.8.0.1,topology net30,ping 10,ping-restart 120,ifconfig 10.8.0.6 10.8.0.5' (status=1)

As you can see, valid (google) DNS is provided, so that cannot be an issue, AFAIK. "redirect-gateway autolocal" should take care of the internet access, but it doesn't. "redirect-gateway dfl" does not change anything.

I am pretty sure I am missing either additional iptable line or a route… but I am lost as what it should be.

To clarify: I am looking for a way to access the internet via VPN, not for the traffic to pass VPN! And, I am unable to ping 8.8.8.8 from the client, so the DNS is not the issue.

Edit: Yes, I enabled IPV4 forwarding. I assume that local LAN would not be visible without it.

pi@router:~ $ sysctl -a | grep net.ipv4.ip_forward    
net.ipv4.ip_forward = 1