Santiago Zarate wrote:
add an IPTABLES rule.... and that's it..

if i'm not mistaken:

# DNAT port 80 request comming from LAN systems to squid 3128
($SQUID_PORT) aka transparent proxy
iptables -t nat -A PREROUTING -i $LAN_IN -p tcp --dport 80 -j DNAT
--to $SQUID_SERVER:$SQUID_PORT
# if it is same system
iptables -t nat -A PREROUTING -i $INTERNET -p tcp --dport 80 -j
REDIRECT --to-port $SQUID_PORT

Taken from here:
http://www.cyberciti.biz/tips/linux-setup-transparent-proxy-squid-howto.html
I do really appreciate your help guys. I was trying to be as dnsmasq-centric as possible, so some stuff was left out. Another thing that I am trying to accomplish is to make IWA work and SQUID fake_ntlm_auth authenticator working for accounting purposes.
Transparent proxying won't help in this scenario unfortunately.
-Eric

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