for installing squid you could use 
for redhat
# rpm -ivh squid.xx.xx.xx.rpm 
from installing by yum
# yum install squid -y
for ubuntu
# sudo apt-get install squid


now the mail thing... 

go to squid configuration file squid.conf

and do some imp changes....

http_port 3129 is default.. change it to whatever it suits you, most
of the people work on 8080 and i go for 8082

after that in acl section

acl any_name src yournetwork
(here your network means the the client side which you want to access
the internet like mine is acl jda-lan src 192.168.11.0/255.255.255.0)

after that http_access allow any_name

save the file and then

# service squid restart
or 
# squid -k reconfigure
or 
# /etc/init.d/squid restart

go ahead and start working there are lots of options for cache,
filtering and a lot more..



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