AS the subject states; I'm having a problem with using Tails ; Tor to become a TOR - Relay, Middle Relay - Not an exit node. Just to clear up any misunderstandings.. heh..
Any ideas? Yes behind router, Yes Ports are frwd'.. Yes, its a virtual server to the correct host pc's ip address. Just cant seem to get the TOR Relay to work at all.. Any ideas? Thanks.
Also, Side note/ question rather.. Is IPtables used to take care of all the traffic routing? Ive noticed few app's dl'd , installed. no proxy config has been needed and yet piggy backs onto tor. How does that work? Thanks Devon

Tails drops all incoming connections, so this is not surprising. There are better options for running Tor relays than Tails, e.g. Tor-ramdisk. For the record I have a vague memory of a paper describing an attack against Tor clients that also run as Tor relays, so don't do that.
This was the case in Tails version prior to 0.10, where all traffic was sent through Tor using iptables. We ?decided to drop that behaviour, so what you describe should not be the case any longer if you have updated Tails recently (which is highly recommended).
Please see our firewall config from Tails 0.9 (line 65 is what's interesting, and note that Tor's
TransPortis configured to port 9040 in/etc/tor/torrc).