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> Date: Wed, 26 Oct 2011 18:30:37 -0700
> From: [email protected]
> To: [email protected]
> CC: [email protected]
> Subject: Re: [squid-users] Is there any way to configure Squid to use local 
> /etc/hosts in name resolution?
>
> Hi Jenny,
>
> Thanks very much for replying to my question. I'm a bit confused --
> are you saying that you don't see my problem on your Squid 3.2
> installation?
>
> My /etc/resolv.conf just reads
>
> search XXX
> nameserver XXX.XXX.XXX.XXX
>

What about /etc/nsswitch.conf hosts line? Does it read: files dns?
 
DNS is a crucial part of squid and I doubt squid itself is not working in this 
respect.
 
What probably is happenning (since you tried a restart) is that you are 
retrieving the URL from your upstream parent. Try changing /etc/hosts in your 
parents (and restart them) and see if this resolves it. Or disable the parents 
and retest.
 
Jenny                                     

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