well!!
can you ping yahoo.com from your linux box. But for that you need to enter your DNS address in /etc/resolv.conf
nameserver primary DNS_IP
nameserver secondary DNS_ip
Now if you want to surf the internet from the clients machine then you need to point your clients gateway to the linux machines lan ip. the DNS address should be the same for the clients machines too.
have you done NAT on your linux box so that your clients will be able to surf the internet. As you had said you are using transparent proxy have you configured your PREROUTING chain such that http traffic will be redirected to the squid proxy server??
check the following link.For transparent proxy and NATTING on redhat8. It will work on your distro too..
http://www.linuxquestions.org/questi...87#post1789887
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