nix i appreciate ur reply, i have checked my iptables and squid logs here are my squid logs while i try to log into msn messenger

1257142473.253 2479 192.168.151.227 TCP_MISS/200 19905 CONNECT https://login.live.com:443 192.168.151.227 DEFAULT_PARENT/127.0.0.1 -
1257142492.357 438 192.168.151.227 TCP_MISS/200 0 POST http://gateway.messenger.hotmail.com...er.hotmail.com 192.168.151.227 DEFAULT_PARENT/127.0.0.1 -

and my iptables are as under

iptables -A INPUT --source 192.168.151.227 -p tcp --dport 22 -j ACCEPT
iptables -A INPUT --source 192.168.151.98 -p tcp --dport 22 -j ACCEPT
iptables -A INPUT --source 0/0 -p tcp --dport 8080 -j ACCEPT
iptables -A INPUT -p tcp --dport 22 -j DROP
iptables -t nat -A PREROUTING -i eth0 -p tcp --dport 3128 -j REDIRECT --to-port 8080

and Squid.conf SSL ports configurations are

acl Safe_ports port 443
http_access deny CONNECT !SSL_ports