Thank you so much! I'm not sure if I understood everything, but here is what I have so far. 1) 1GB of RAM in this machine (P4, 40GB IDE, 1GB RAM). 2) Running Squid 3.1.3 now :-) 3) Not sure what you meant with AUFS. Does this need to be changed? cache_dir ufs /var/spool/squid3 7000 16 256 4) Random port for interception? Like this: http_port 3128 transparent 5) No NATing is done on this machine. 6) Added Safe_Ports and SSL_Ports Here is a complete config file. Please let me know if missed anything and thank you again! acl manager proto cache_object acl localhost src 127.0.0.1/32 acl to_localhost dst 127.0.0.0/8 acl localnet src 176.16.0.0/21 #176.16.0.-176.16.3.254 range acl localnet2 src 192.168.11.0/24 #192.168.11.0-254 range acl localnet3 src 192.168.200.0/24 #192.168.200.0-254 range acl SSL_ports port 443 acl Safe_ports port 80 # http acl Safe_ports port 21 # ftp acl Safe_ports port 443 # https acl Safe_ports port 70 # gopher acl Safe_ports port 210 # wais acl Safe_ports port 1025-65535 # unregistered ports acl Safe_ports port 280 # http-mgmt acl Safe_ports port 488 # gss-http acl Safe_ports port 591 # filemaker acl Safe_ports port 777 # multiling http acl CONNECT method CONNECT http_access allow manager localhost http_access deny manager http_access deny !Safe_ports http_access deny CONNECT !SSL_ports http_access allow localhost http_access allow localnet http_access allow localnet2 http_access allow localnet3 http_access allow all #not restricted because its behind the firewall and serving local LAN only. I'm just trying to get this working for now... icp_access allow all htcp_access allow all http_port 3128 transparent # ok, transparent proxy, no NATing. Not sure what WPAD/PAC is... hierarchy_stoplist cgi-bin ? access_log /var/log/squid3/access.log squid refresh_pattern ^ftp: 1440 20% 10080 refresh_pattern ^gopher: 1440 0% 1440 refresh_pattern (cgi-bin|\?) 0 0% 0 refresh_pattern . 0 40% 40320 icp_port 3130 coredump_dir /var/spool/squid3 refresh_pattern -i \.index.(html|htm)$ 0 40% 10080 refresh_pattern -i \.(html|htm|css|js)$ 1440 40% 40320 cache_mgr help@xxxxxxxxxxxx cache_dir ufs /var/spool/squid3 7000 16 256 visible_hostname gw.mydomain.org