Note however, that following onanugaola's instructions, you also allow the entire world to connect to and use your proxy for SPAM,PORN etc or just eat up your bandwidth as they please.

You need to set a more restrictive http_access line and then deny all. Read the comments in the file, its the best documentation for squid yet.

Hi onanugaola,

It appears you are not very familiar with Linux. The problem you are having is a lot more difficult than just squid. You need to be doing NAT on the network and so smoothwall would have taken care of that for you. If you are really not sure about how to go about all this and cant take the pain to read it up properly before having to implement it in a production environment, I would suggest you use one of the easy to setup Linux distros out there, that do all the work for you.

Some good ones are
smoothwall www.smoothwall.org (as mentioned before)
Clarkconnect Linux www.clarkconnect.com (also based on Redhat 9 BTW)
IPCOP (cant remember the URL)

I'm sure you already have a dedicated system which you use for your redhat 9, so using these will erase your hard drive and make a dedicated gateway/firewall/cache system with web-based point-and-click configuration, which I'm sure you would find easy to use.