Hi,
iptables works at IP address / port /interface etc level and doesn't deal in canonical names (e.g.
as such. You can of course do stuff like :
/sbin/iptables -A INPUT -s 207.46.0.0/16 -j DROP
/sbin/iptables -A OUTPUT -d 207.46.0.0/16 -j DROP
/sbin/iptables -t nat -A POSTROUTING -o eth1 -d ! 207.46.0.0 -j MASQUERADE
(eth1 being internet interface)
... which would drop most (all ?) of traffic to and from the evil empire.
If you want to control access to the internet on a site by site, etc., basis its actually easier to use the squid cache proxy server and to use the acl provided by that -->
- thats got what you are looking for and more.
The only drawback to using squid vs IP masquerading is that it only proxies http protocols which can be a constraint, however you can use it in conjunction with masquerading by just having the masquerade rules active but not for ports 80, 443, etc.
Hope this helps