I’ve had a need to get a local squid proxy to perform local filtering based on AD Security groups because it’s not something websense can do. I found this wonderful howtofoge guide online and Used it to setup the base system. This howto is a work in progress as the next stage is to get it working with DansGuardian or SquidGuard.
Client Internet Explorer Browsers need to have “Enable Integrated Windows Authentication” ticked in Internet Options :: Advanced settings as well as Proxy Auto detection enabled – google these if not sure. All modern web browsers will support proxy auto detection. Firefox and Chrome also support Windows Authentication.
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