Proxy anonymous Tutorial hacker

This howto describes step by step a method to install a SQUID 3 server as an Anonymous Proxy. An anonymous proxy is a tool that attempts to make activity on the Internet untraceable. It accesses the Internet on the user's behalf, protecting personal information by hiding the source computer's identifying information. Simply say to hide your IP.
The following How To sets up CentOS 5 as OS but it can be implemented on CentOS 4, Fedora Core 5-9 with same steps and SQUID version 3. By default SQUID only uses the default  IP to communicate on the Internet but we will make use of all IPs available on the server to act as an anonymous proxy, i.e., if a user connects to IP1 of server then IP1 will act as a proxy and forward the same IP, if a user connects to IP2 then IP2 will act as a proxy and foward the same IP and so on and also we will implement ncsa user based authentication to protect the server from unauthorized usage.
Server = CentOS 5.2, SQUID = version 3, IPs = 192.168.0.1 - 192.168.0.5

1) Installation Of Squid 3:

CentOS 5 comes with Squid 2.6 but we need Squid 3, so we will download the source rpm of squid 3 and compile it for our OS.

1.1)  Install Prerequisites

Install pre-requisite software, i.e. development tools to get all the compilers, libraries and other rpms for the compilation of SQUID 3.

yum -y groupinstall "Development Tools"
yum -y install rpm-build openjade linuxdoc-tools openldap-devel pam-devel openssl-devel httpd rpm-devel

1.2) Download Squid 3 Source RPM

 Download source rpm of Squid 3 from the FEDORA website and install it.

cd /usr/src
wget http://download.fedora.redhat.com/pub/fedora/linux/releases/10/Fedora/source/SRPMS/squid-3.0.STABLE10-1.fc10.src.rpm
rpm -ivh squid-3.0.STABLE10-1.fc10.src.rpm

1.3) Compile Squid 3

Use the following commands to start the compilation, at the end it will generate an rpm file to install:

cd /usr/src/redhat/SPECS
rpmbuild -bb squid.spec

1.4) Install Squid 3

Install the newly built rpm, which will be found in /usr/src/redhat/RPMS/i386 for i686 and /usr/src/redhat/RPMS/x86_64 for x86_64.

rpm -Uvh /usr/src/redhat/RPMS/i386/squid-3.0.STABLE10-1.i386.rpm

2) Configuration

I will use the default squid.conf to edit.

vi /etc/squid/squid.conf

2.1) Configure auth_param

We will enable ncsa authentication to access our squid server. Find the following lines :

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