Hie henrik I have caught in a troubled water, details are as under: I have installed FC3 consisted on 2.6.9 kernel version with squid 2.5 stable 7. Till here things are fine and working. Now I enable wccp support in squid defining wccp router and version "4". My router has IOS Version 12.1(9)E3 which after my configuration on squid shows the cache associated with that. Moreover as I read from ur posts that kernel 2.6 has a builtin support for wccp module so I just need to create a gre tunnel which I did as follows: /etc/rc.local #Gre tunneling modprobe ip_gre ip tunnel add wccp mode gre remote 203.81.204.33 local 203.81.204.22 dev eth0 ip link set wccp up After all this, squid works fine, router selects cache, redirect data but after that sometimes it says redirect denied and some time unassigned packets. So kindly suggest me that what I do, whether my kernel is not supporting wccp or there is something wrong with IOS version I m really in big trouble .