Nick & Gitsnik, thank you very much for your excellent comments and help !
I finally have it working.. thankfully, it was driving me nuts.. ;
>using a netbook with back|track 4 pre final
>wifi dongle WUSB54GC on netbook having internet access on wlan1
Created/configured the dhcpd.conf file as required and mentioned hereabove in Nick's post.
Then created tap interface
Brought the tap interface up and assigned the necessary following Nick's post;
airmon-ng start wlan0
airbase-ng -e "TEST_AP" -c 9 mon0
ifconfig at0 up
ifconfig at0 192.168.2.129 netmask 255.255.255.128
route add -net 192.168.2.128 netmask 255.255.255.128 gw 192.168.2.129
Followed Gitsnik's suggestion on the dhcp using the alternative file and alternative pid ;
mkdir -p /var/run/dhcpd && chown dhcpd:dhcpd /var/run/dhcpd
Ran the iptables as advised ;
dhcpd3 -cf /etc/dhcp3/dhcpd.conf -pf /var/run/dhcpd/dhcpd.pid at0
192.168.1.1 being my actual internet gateway.
iptables --table nat --flush
iptables --table nat --delete-chain
echo 1 > /proc/sys/net/ipv4/ip_forward
iptables --table nat --append POSTROUTING --out-interface wlan1 -j MASQUERADE
iptables --append FORWARD --in-interface at0 -j ACCEPT
iptables -t nat -A PREROUTING -p udp --dport 53 -j DNAT --to 192.168.1.1
And SUCCESS !
Was able to connect, get IP and surf around happily. DL speed not too brilliant at approx 65 KB/s however this expected and all good.
Thanks again guys for the assistance, all greatly appreciated !