Networking NAT question?

Great question. NAT works in conjunction with a stateful firewall. Here's the packet flow and what happens. You initiate a connection to a web server out on the internet. Your traffic hits the NAT device and your device NAT's it. Before jumping in too deep let's clear up some terminology. If you have one public IP address assigned to your router and you have multiple LAN hosts what your router is doing is called PAT (port address translation) or NAT Overload. It's called that because multiple LAN hosts are using a single public IP. You're 'overloading' the public IP. So the router will NAT your specific traffic and what it does is change the source IP and source port of the packet. The source IP will be your public IP and the source port will be an ephmeral port (1025-65535). The firewall portion will put that information in it's state table. Return traffic will be checked against the state table and if the TCP session is in there it will be allowed and forwarded to the NAT table where the NAT will be "reversed" and sent to your PC. This happens on every flow traversing a firewall/NAT device. With NAT overload all your LAN IP's share the public address and they key concept is that the source ports are changed so return traffic with the same public IP can determine where to send it on the internal LAN. Hope this makes sense.

Every device on the private side has to have an IP address to route packets to and receive them from the device

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