The Squid is a good proxy server. Its configuration is very simple. Please use the following procedures.
1) Most of the standard distributions have squid packages in its repository. If you are using fedora, RHEL or centos please do the following procedurea
# yum install squid -y
If your in debian or Ubundu please use the following,
# apt-get install squid
2) Now open the squid configuration file “squid.conf” . In general it will be in /etc/squid/squid.conf . Now modify/ add the following lines.
cache_dir ufs /var/spool/squid 1000 16 256
access_log /var/log/squid/access.log squid
3) Now add the following in the acl section.
acl our_networks src xxx.xxx.xxx.xxx/xx
http_access allow our_networks
Here the xxx.xxx.xxx.xxx/xx is your local IP /netmask
4) Now start the squid server
# /etc/rc.d/init.d/squid start
5) Now configure your web browser as follows. ( It is my firefox configuration )
Go to Preferences -> connection settings -> manual Proxy configurations
Now configure your proxy server IP and port ( 3128)
Now click Ok.
This is the most simplest proxy server configurations over network.
Note : Please check the log file /var/log/squid/access.log for any errors