LinuxQuestions.org - browser using proxy not using proxy's IP

I've setup squid proxy for the first time on centos 5.
This is my current setup.

squid.conf:

Quote:

acl our_networks src 192.168.10.0/24
http_access allow our_networks

Quote:

internet -- modem -- Firewall --switch--squid proxy (192.168.10.100)
--client workstation ((192.168.10.200)
(client workstation is connected to the same switch as the squid proxy)

And on the client workstation's Internet Explorer: Tools->Options->Connection-Lan Settings and check the box for "Use a proxy server for your LAN then type the address of the squid proxy (192.168.10.100) and set the port to 3128. Unchecked the box for Bypass proxy server for local addresses.

When connecting to a webserver on the same network (192.168.10.50) through proxy using a browser on the client machine (192.168.10.200), when I do netstat -an on the webserver, I don't see the proxy's IP (192.168.10.100) but I see the client machine's IP (192.168.10.200) as an established connection. Isn't it supposed to show the proxy's IP and not the actual client's IP as it's being proxied?

Thanks