Install Apache

# apt-get install apache2

# sudo apt-get install squid

Key File Locations

File	Purpose
/etc/squid/squid.conf	Squid configuration file
/var/log/squid/access.log	Squid access log file

Find the http_port tag, By default it reads
# http_port 3128

This is the default port that Squid will listen on for requests. If you want to change it, uncomment the line and set the correct port. If you want Squid to listen only on one specific NIC, you can also change the IP address – for example : 192.168.1.5:3128

Next, find the http_access section Uncomment these 2 lines:
acl our_networks src 192.168.1.0/24 192.168.2.0/24
http_access allow our_networks

NOTE: You'll need to change 192.168.1.0/24 to match your network. Unless you have a second subnet you can delete 192.168.2.0/24

# sudo /etc/init.d/squid start|restart|stop

On client PC, change the firefox/IE browsers proxy setting with the Squid server's

IP address (for eg 10.1.0.1) and port 3128.