I installed my Fedora server with 2 NIC cards..
While starting my squid I am getting the error message like this.

[root@fedora2 ~]# service squid start
init_cache_dir /var/spool/squid... /etc/init.d/squid: line 54: 2495 Aborted $SQUID -z -F -D >>/var/log/squid/squid.out 2>&1
Starting squid: /etc/init.d/squid: line 53: 2496 Aborted $SQUID $SQUID_OPTS >>/var/log/squid/squid.out 2>&1
[FAILED]
[root@fedora2 ~]#

Can anybody comment on this

What version of squid are you using? - 2.5 or 2.6?

Usually when squid is installed the first time, you need to create the disk cache manually.

# /usr/local/sbin/squid -z

In my case (OpenBSD) it is installed in /usr/local/sbin.

But before doing this, you need to manually edit squid.conf (usually in /etc/squid) to set the IP and port squid will listen and bind to. In my case, I prefer to bind it only to localhost:3128 or 127.0.0.1:3128 so that I would no longer configure all of my clients browser if they don't use a proxy before.

http_port 127.0.0.1:3128

Also you will need to set the most basic ACL under the ACCESS CONTROL section such as this:

acl my_net src 192.168.0.0/24
http_access allow my_net
http_access allow localhost

Consult your logs for error hint usually /var/log/messages or might be in /var/spool/squid/logs in your case.

Then try to start squid and check out /var/spool/squid/logs/cache.log to see if squid started normally. You should also check if there is a listening connection via netstat.