squid - dnsserver error
 

Hey, all, I'm running squid on a Red Hat 7.2 box. Squid starts fine and works when I explicitly set the squid box as the proxy server in my browser. However, when I try to set up transparent proxying I always get an error screen: squid cannot resolve the IP address of the specified URL. This happens for any URL. It further states that the dnsserver returns an error: unknown domain name. This occurs for any website (yahoo, etc.) . The log file cache.log reports that the dns test works fine, and indeed DNS works when I log in directly to the squid box. Any ideas as to what might be the problem?

Regards,
M.R.F.