I'm wondering if anybody knows what might be causing this. I've confirmed this problem in linux builds of Squid 3.0, 3.1.1, 3.1.10 and 3.2.0.4.
Using firefox (or probably any browser - it also happens in a webkit based browser under development) clear the browser's disk cache and try to load or reload http://ireport.cnn.com (with proxy address/port set to Squid of course). Loading the page takes a very long time (several minutes) even on a fast network connection. Take Squid out of the mix and everything loads in seconds. This is using the default squid.conf file. The problem does not happen in Squid 2.7! Thanks, Max
