Behnam- The router is either not seeing the WCCP registration from the squid box, or the squid box is not seeing the ack from the router. Tom's suggestion of "debug ip wccp" is a good start. The IOS version makes a huge difference. Between revisions of IOS, WCCP works and/or breaks, so it is something you have to play with to know which IOS works. The specific 12.4 releases I have used work...but on a 26xx series router you may not have enough flash and/or RAM for 12.4. Nick