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Create Squid Proxy Server
These instructions are specific for Ubuntu.
Install Squid
sudo apt-get install squid3
sudo cp /etc/squid3/squid.conf /etc/squid3/squid.conf.ORIG
sudo chmod a-w /etc/squid3/squid.conf.ORIG
sudo vi /etc/squid3/squid.conf
By default, Squid listens on port 3128. If you want to change the port change the http_port directive.
To allow only a specific range of IPs to connect, edit the ACLAccess Control List section. For this example, we want to allow the 192.168.42.0 subnetwork access to squid.
At the bottom of the ACLAccess Control List section, add the line (without the quotes): "acl fortytwo_network src 192.168.42.0/24".
Add the top of the http_access section, add the line (without the quotes): "http_access allow fortytwo_network"
sudo service squid3 restart
tail -f syslog
Setup Digest authentication
cd /etc/squid3/
sudo touch passwd
apt-get install apache2-utils
sudo chown proxy.proxy passwd
chmod 640 passwd
sudo chmod 640 passwd
sudo htdigest /etc/squid3/passwd <realm name> <username>
sudo cat passwd
/usr/lib/squid3/digest_file_auth -c /etc/squid3/passwd
/usr/lib/squid3/digest_file_auth -c /etc/squid3/passwd "User #75014":"TestRange"
/usr/lib/squid3/digest_file_auth -c /etc/squid3/passwd
"<username>":"<realm name>"
sudo /usr/lib/squid3/digest_file_auth -c /etc/squid3/passwd
sudo vi /etc/squid3/squid.conf
sudo service squid3 reload