Another good NAT break down on Internetwork Expert’s site.

Quite many people don’t pay attention to the difference in handling the packets on interfaces configured for NAT inside and outside. Here is an example to demonstrate how NAT “domains” interact with routing. Consider three routers connecte in the following manner:

nat-inside-outside

For this scenario we have no routing configured. Let’s use static NAT to provide connectivity between R1 and R2. R2 would see R1 as a host on local connected segment with the IP address 155.1.23.1 and R1 would see R2 as a host on it’s local segment with the IP address 155.1.13.2. This goal could be achieved with the following configuration:

R3:
!
interface Serial 1/0.301 point-to-point
 ip address 155.1.13.3 255.255.255.0
 ip nat inside
 no ip route-cache
!
interface Serial 1/0.302 multipoint
 ip address 155.1.23.3 255.255.255.0
 frame-relay map ip 155.1.23.2 302
 ip nat outside
 no ip route-cache

!
! Static NAT: translations are effectively bi-directional
!
ip nat inside source static 155.1.13.1 155.1.23.1
ip nat outside source static 155.1.23.2 155.1.13.2

R2:
!
! Add a Frame-Relay mapping for the new IP (representing R1)
! so that R2 would know how to reach the address
! over multipoint FR interface
!
interface Serial 1/0.203 multipoint
 ip address 155.1.23.2 255.255.255.0
 frame-relay map ip 155.1.23.3 203

Full article here