Some of My Friend asked How they can run the world famous Linux Proxy server Squid in Windows XP.
It is better to use Linux for this purpose. , You can make an experiment in your windows and switch to Linux.
installing squid on windows
Download squid for windows from :
Full Installation Instructions are in the documentation.
Change the c:\squid\etc\squid.conf from the default :
acl home src 192.168.0.0/255.255.255.0 # (change it for your subnet)
http_access allow home
cache_dir aufs c:/squid/var/cache 1000 16 256
run the following commands :
Now your squid is ready.