ubuntu 12.04 - squid 3 proxy server

sudo apt-get install squid3

create squid cache folder:
sudo mkdir /srv/squid
sudo mkdir /srv/squid/cache
sudo chown -R proxy:proxy /srv/squid
sudo chmod -R 777 /srv/squid

edit squid config file:
sudo nano /etc/squid3/squid.conf

use config sample below:
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# ACCESS CONTROLS OPTIONS
# ====================
#
acl QUERY urlpath_regex -i cgi-bin \? \.php$ \.asp$ \.shtml$ \.cfm$ \.cfml$ \.phtml$ \.php3$ localhost
acl all src
acl localnet src 10.0.0.0/8
acl localnet src 192.168.1.0/24
acl localhost src 127.0.0.1/32
acl safeports port 21 70 80 210 280 443 488 563 591 631 777 901 81 3128 1025-65535
acl sslports port 443 563 81 2087 10000
acl manager proto cache_object
acl purge method PURGE
acl connect method CONNECT

http_access allow manager localhost
http_access deny manager
http_access allow purge localhost
http_access deny purge
http_access deny !safeports
http_access deny CONNECT !sslports
http_access allow localhost
http_access allow localnet
http_access deny all
#
# NETWORK OPTIONS
# —————
#
http_port 3128
#
# OPTIONS WHICH AFFECT THE CACHE SIZE
# ==============================
#
cache_mem 8 MB
maximum_object_size_in_memory 32 KB
memory_replacement_policy heap GDSF
cache_replacement_policy heap LFUDA
cache_dir aufs /srv/squid/cache 10000 14 256
maximum_object_size 128000 KB
cache_swap_low 95
cache_swap_high 99
#
# LOGFILE PATHNAMES AND CACHE DIRECTORIES
# ==================================
#
access_log /var/log/squid3/access.log
cache_log /cache/cache.log
#cache_log /dev/null
cache_store_log none
logfile_rotate 5
log_icp_queries off
#
# OPTIONS FOR TUNING THE CACHE
# ========================
#
cache deny QUERY
refresh_pattern ^ftp: 1440 20% 10080 reload-into-ims
refresh_pattern ^gopher: 1440 0% 1440
refresh_pattern -i \.(gif|png|jp?g|ico|bmp|tiff?)$ 10080 95% 43200 override-expire override-lastmod reload-into-ims ignore-no-cache ignore-private
refresh_pattern -i \.(rpm|cab|deb|exe|msi|msu|zip|tar|xz|bz|bz2|lzma|gz|tgz|rar|bin|7z|doc?|xls?|ppt?|pdf|nth|psd|sis)$ 10080 90% 43200 override-expire override-lastmod reload-into-ims ignore-no-cache ignore-private
refresh_pattern -i \.(avi|iso|wav|mid|mp?|mpeg|mov|3gp|wm?|swf|flv|x-flv|axd)$ 43200 95% 432000 override-expire override-lastmod reload-into-ims ignore-no-cache ignore-private
refresh_pattern -i \.(html|htm|css|js)$ 1440 75% 40320
refresh_pattern -i \.index.(html|htm)$ 0 75% 10080
refresh_pattern -i (/cgi-bin/|\?) 0 0% 0
refresh_pattern . 1440 90% 10080
#
quick_abort_min 0 KB
quick_abort_max 0 KB
quick_abort_pct 100
store_avg_object_size 13 KB
#
# HTTP OPTIONS
# ===========
vary_ignore_expire on
#
# ANONIMITY OPTIONS
# ===============
#
request_header_access From deny all
request_header_access Server deny all
request_header_access Link deny all
request_header_access Via deny all
request_header_access X-Forwarded-For deny all
#
# TIMEOUTS
# =======
#
forward_timeout 240 second
connect_timeout 30 second
peer_connect_timeout 5 second
read_timeout 600 second
request_timeout 60 second
shutdown_lifetime 10 second
#
# ADMINISTRATIVE PARAMETERS
# =====================
#
cache_mgr admin
cache_effective_user proxy
cache_effective_group proxy
httpd_suppress_version_string on
visible_hostname proxyserver
#
ftp_list_width 32
ftp_passive on
ftp_sanitycheck on
#
# DNS OPTIONS
# ==========
#
dns_timeout 10 seconds
dns_nameservers 8.8.8.8 8.8.4.4 # DNS Server
#
# MISCELLANEOUS
# ===========
#
memory_pools off
client_db off
reload_into_ims on
coredump_dir /cache
pipeline_prefetch on
offline_mode off
#
#Marking ZPH ---- not supported in squid3
#==========
#zph_mode tos
#zph_local 0x04
#zph_parent 0
#zph_option 136
### END CONFIGURATION ###

-------------------------------------------------------------------------------------------------------------------

create swap folder:
sudo service squid3 stop
sudo squid3 -z
sudo service squid3 start


================================================================================================================
TO CONFIGURE SQUID AS TRANSPARENT PROXY:

edit /etc/squid3/squid.conf:
	sudo nano /etc/squid3/squid.conf

	change:
		http_port 3128 transparent

add iptables rules in rc.local:
	sudo nano /etc/rc.local

	add entry before exit 0:
		/sbin/iptables -t nat -A PREROUTING -i eth1 -p tcp --dport 80 -j DNAT --to--destination 192.168.0.1:3128
                /sbin/iptables -t nat -A PREROUTING -i eth1 -p tcp --dport 80 -j REDIRECT --to-port 3128
		/sbin/iptables -t nat -A POSTROUTING -o eth0 -j MASQUERADE