You'd get a better boost by running squid on your local machine. Doing this will cause less traffic over the dialup link because the local cache will likely be able to fill a decent portion of your requests. Running squid on the server you dial into will save traffic over the T1, but everything will still be transferred over your dialup connection.
That makes sense. I'm not worried about traffic over the T1 so I'll take squid off that server. I'll install it on my local machine in order to decrease traffic over the dial-up.
-- Andrew Gaffney
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