I am using Kanotix 2.6.17, KDE 3.5.2, iptables, and a stand alone behind a router. I am trying to get squid to work and have spent 2-3 weeks browsing dozens of sites asking for help, and have gotten nowhere. Here is what I have done.
# iptables -F
# iptables -X
# iptables -t nat -F
# iptables -t nat -X
# iptables -t mangle -F
# iptables -t mangle -X
# iptables -t nat -A OUTPUT -p tcp --dport 80 -m owner --uid-owner squid -j ACCEPT
# iptables -t nat -A OUTPUT -p tcp --dport 3128 -m owner --uid-owner squid -j ACCEPT
# iptables-save > /etc/sysconfig/iptables
# /etc/init.d/squid restart
Restarting Squid HTTP proxy: squid.

squid.conf uncomented lines

http_port 127.0.0.1:3128
hierarchy_stoplist cgi-bin ?
acl QUERY urlpath_regex cgi-bin \?
no_cache deny QUERY
maximum_object_size 32768 KB
maximum_object_size_in_memory 8 KB
cache_dir ufs /var/spool/squid 1400 16 256
refresh_pattern Release$ 0 41% 720
refresh_pattern Packages\.gz$ 0 41% 720
refresh_pattern Sources\.gz$ 0 41% 720
refresh_pattern \.orig.tar.gz$ 525600 0% 525600 override-lastmod ignore-reload
refresh_pattern \.diff.gz$ 525600 0% 525600 override-lastmod ignore-reload
refresh_pattern \.deb$ 525600 0% 525600 override-lastmod ignore-reload
refresh_pattern \.dsc$ 525600 0% 525600 override-lastmod ignore-reload
refresh_pattern ^ftp: 0 50% 43200
refresh_pattern ^gopher: 0 50% 720
refresh_pattern \.shtml$ 0 10% 720
refresh_pattern \.html$ 0 50% 720
refresh_pattern \.htm$ 0 50% 720
refresh_pattern \.php.$ 0 10% 720
refresh_pattern \.img$ 0 50% 720
refresh_pattern \.jpeg$ 0 50% 720
refresh_pattern \.jpg$ 0 50% 720
refresh_pattern . 0 20% 720
acl all src 0.0.0.0/0.0.0.0
acl manager proto cache_object
acl localhost src 127.0.0.1/255.255.255.255 192.168.7.0/255.255.255.0
acl SSL_ports port 443 563
acl Safe_ports port 80
acl Safe_ports port 21
acl Safe_ports port 443 563
acl Safe_ports port 70
acl Safe_ports port 210
acl Safe_ports port 280
acl Safe_ports port 488
acl Safe_ports port 591
acl Safe_ports port 777
acl Safe_ports port 901
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 !Safe_ports
http_access deny CONNECT !SSL_ports
http_access allow localhost
http_access deny all
icp_access allow all
cache_mgr admin
cache_effective_user squid
cache_effective_group squid
visible_hostname BRYANCLIENT
httpd_accel_host virtual
httpd_accel_port 80
httpd_accel_with_proxy on
httpd_accel_uses_host_header on

Two thoughts come to mind. I got something wrong in the squid.conf (even though that is what I was to put), or there is something in the kernel that is blocking what I am trying to do, and if there is I have no clue as to how to get at it. Access.log and cache.log are both empty. I really would like to know how to get this sorted out as so much of what you can do to controll the internet via other packages are depended upon squid.