Set up IPCop with a green, orange and red interface (the red can be a network card, dial-up modem or ADSL modem). Give the green interface an ip address in the same range as the internal interface on the sme box. Give the orange interface a different ip address on a different range. Turn off the IPCop DHCP server.
On the SME box give the internal interface an ip on the same range as the green IPCop interface, give the external interface an ip on the same range as the orange interface on IPCop. Set DHCP range up the same as the internal network interface. Set the gateway on the SME box to be the IPCop orange interface address. Don't set the gateway on the DHCP setup to the IPCop but leave it as the SME box.
On IPCop connect the red interface to the internet, ornage interface to the external interface on the SME box, connect the green interface and the internal interface to the same switch and then connect the clients to that switch. As a picture says a thousand words have a look at
this example.
The green interface from IPCop can be missed out completly but is useful to provide a backup route should the SME box fail.
If it is working and all traffic is passing through the SME box then IPCop and back, then on the IPCop admin interface you will see no traffic for the green interface and all on the orange interface.
Note: With this setup you will not be able to ping. This is a result of using the orange interface which doesn't allow ping requests.