>> 5) No NATing is done on this machine.
>
> Ah, "transparent" flag does not means what you think then.
>
> In Squid-3.2 and older it means "traffic arriving at this port has been
> redirected here via NAT in the firewall".
>
> What did you actually want?

I have 300 kids with laptops. It would be difficult to setup each
individual browser for proxy.
Proxy is a LAN client like the rest of laptops. Firwall (NAT, DHCP
etc.) sends/forwards all the traffic to the proxy.
No NAT is preformed on the proxy. The proxy computer is just a Squid
3.1 box with dnsmasq.

Thank you!!

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