I've already wrote about setting up a Linux transparent squid proxy system. However I'm getting lots of questions about Squid basic installation and configuration:

How do I install Squid Proxy server on CentOS 5 Liinux server?

Sure Squid server is a popular open source GPLd proxy and web cache. It has a variety of uses, from speeding up a web server by caching repeated requests, to caching web, name server query , and other network lookups for a group of people sharing network resources. It is primarily designed to run on Linux / Unix-like systems. Squid is a high-performance proxy caching server for Web clients, supporting FTP, gopher, and HTTP data objects. Unlike traditional caching software, Squid handles all requests in a single, non-blocking, I/O-driven process. Squid keeps meta data and especially hot objects cached in RAM, caches DNS lookups, supports non-blocking DNS lookups, and implements negative caching of failed requests. Squid consists of a main server program squid, a Domain Name System lookup program (dnsserver), a program for retrieving FTP data (ftpget), and some management and client tools.