On Sat, 5 Nov 2005, Senthil Murugan wrote:

Is it necessary that the router and squid machine needs to be in the same network or the squid server can be beyond another router in a different n/w.

With GRE encapsulation there may be any number of hops between the cache server and the router. They do not need to be in the same network.

Regards
Henrik

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