Douglas,
Have you ever heard of ClarkConnect?  It's an all-in-one tailored
distro that does everything you would want a dedicated linux router to
do.  I have had one running at my office now for about 6 months and I
absolutely love it.  The setup is super easy and it is rock solid.  It
does so much stuff that you will want that you should just check out
there website http://www.clarkconnect.com/
to see all the features.  It will do your NAT with iptables/dnsmasq
and setting up transparent squid is super simple with it's HTTPS web
management.

I use the community edition.. it's free.  Although if you like, you
can pay for updates and stuff from their subscription service, but I
don't.

Brian

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