You have forced squid to accept request from localhost only (127.0.0.1) so it will never ever work with Windows XP or other Lan computer.
First, remove all iptables rules with following command (later we will setup iptables, once squid started to work):
Code:
# service iptables stop
Open squid.conf file:
Find out line that read as follows:
Code:
http_port 127.0.0.1:3128
Replace it:
Save the file and restart squid:
Code:
# service squid restart
Now go to Windows box and setup proxy IP and 3128 port.
And test it and it should work.