Linux 1.3.66 needs ipfwadm 2.0beta2, which you can find on ftp.xos.nl.
Masquerading rules are special cases of forwarding rules (it's a policy
like "accept" or "reject", see the manual page of ipfwadm).
An example:
ipfwadm -F -a masq -S yournet/24 -D 0.0.0.0/0
enables masquerading for all connections initiated from "yournet".
The -M flag of ipfwadm is only for listing the kernel administration
of masqueraded sessions, masquerading rules are set with the -F flag.
Masquerading in 1.3.66 only works only you have applied a small patch.
Both ipfwadm and the kernel patch you can find on
ftp://ftp.xos.nl/pub/linux/ipfwadm/
-- -- Jos Vos <jos@xos.nl> -- X/OS Experts in Open Systems BV | Phone: +31 20 6938364 -- Amsterdam, The Netherlands | Fax: +31 20 6948204