Steps To install a squid proxy server
1. Squid Proxy servers are software applications that run on your firewall machine in order to provide indirect Internet access to your network.
2.(i.e) buying a single ip or net connection from ISP and giving internet connection to all the clients in that network is called as Proxy settings.
3.In Linux, Squid is the package used as proxy server.
Advantages of Squid Proxy Server
1.This reduces the amount of data accessed from the web.
2.Another advantage is that you can configure your firewall to only accept HTTP web traffic from the Squid server and no one else.
3.Squid can then be configured to request usernames and passwords for each user that users its services.
4.This provides simple access control to the Internet
Download This ppt and start configuring Squid Server
Best of Luck