I am using this firewall and it runs great. You can customize it as you please, it of course runs on iptables. If you are a starter this firwall will run perfect right out of the box. Download the .iso and the product manual for it.
It really depends on the machine that you'll be using for the firewall and how paranoid are you about security. Rule of thumb will be to have the least amount of stuff/programs on your firewall box to minimize the chance of a program exploit compormizing security of your firewall. Thus, you may not want to have XFree on your machine. No GUI means no GUI based tools (firestarter, ipcop etc). Also, GUI on a slow box could cause havoc with your firewall's ability to route traffic.
Learn up on iptables and write your own rule sets. It may seem difficult at first but all off us here should be willing to help if you have a problem.
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