delay_access 2 allow allowed_hosts delay_access 1 allow localhost delay_access 1 allow all
delay_access is sorted per pool, always starting with pool 1, then pool 2 etc... so the above configuration is equivalent to
delay_access 1 allow localhost delay_access 1 allow all delay_access 2 allow allowed_hosts
so with the above configuration all requests will go into pool 1.
Thanks Henrik.
This solved the confusion. Perhaps this explanation should be added to the squid.conf file to make it clearer.
One more doubt - how does squid manage the downloading rate from any web server to the squid; is it just by introducing a delay in the application level while receiving data ?