I did the firewall.stop and madethe changes to squid and restarted, I have gone no farther because now I am concerned about something else. I am getting an eth0: Tx timeout -reset. I ran ifconfig with this result:
$ ifconfig
eth0 Link encap:Ethernet HWaddr 00:01:53:00:9F:17
inet addr:192.168.7.151 Bcast:192.168.255.255 Mask:255.255.255.0
UP BROADCAST RUNNING MULTICAST MTU:1500 Metric:1
RX packets:0 errors:0 dropped:0 overruns:0 frame:0
TX packets:0 errors:0 dropped:0 overruns:0 carrier:0
collisions:0 txqueuelen:1000
RX bytes:0 (0.0 b) TX bytes:0 (0.0 b)
Interrupt:5 Base address:0xe400

lo Link encap:Local Loopback
inet addr:127.0.0.1 Mask:255.0.0.0
UP LOOPBACK RUNNING MTU:16436 Metric:1
RX packets:130 errors:0 dropped:0 overruns:0 frame:0
TX packets:130 errors:0 dropped:0 overruns:0 carrier:0
collisions:0 txqueuelen:0
RX bytes:11224 (10.9 KiB) TX bytes:11224 (10.9 KiB)

Is this happening because squid is finally kicking in and do I then go back and do what you told me to do in the first place, or do I need to make other changes first.