Zeon:
I don't know much about the router you are using but I don't see why NAT even needs to be involved? Isn't simply creating a new interface with the /29 called say "Public Interface" (and making the first usable IP of that /29 your router's IP) then plugging whatever you want into that interface? Your default route should go out via the route being given by the PPP process. You can then see if say a PC with a statically assigned IP from that /29 can reach anything outside of your network.
This is how I do it with PFSense and there is literally nothing I need to configure beyond the "Public" interface....
Agreed - a routed subnet is the most straightforward solution. 2degrees would only assign me a /30 subnet so I went with the NAT option to get 4 usable IP addresses (instead of 2 with the routed option, not including the primary static IP). You have more flexibility with the /29!
Cheers