I must be going senile.... Your original message had:
iptables v1.4.8: can't initialize iptables table `tproxy': Table does not exist (do you need to insmod?)Perhaps iptables or your kernel needs to be upgraded
But... http://wiki.squid-cache.org/Features/Tproxy4#Minimum_Requirements_.28IPv6_and_IPv4.29
---> iptables 1.4.*10* Amos