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Routing subnet through proxy to same subnet traffic using iptables, using WiFi Access Point connected to router

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http://serverfault.com – I'm having trouble with getting local subnet traffic sent through a proxy. I've got some mobile testing devices on a subnet 192.168.0.0 and a web server on that also. For dev purposes, I need to inject some code. I'm using a proxy to do this. However the traffic that is local to the subnet (i.e. from a device, say 192.168.0.2 to the webserver 192.168.0.3) is not passing through the proxy server. All other requests get the code injected correctly. My current iptables is configured using the following command: iptables -t nat -A PREROUTING -p tcp -m tcp -i eth1 --dport 80 -j DNAT --to-destina (HowTos)