I ran into this issue, and this is how I solved it:
I looked for clues in the log at /var/log/squid/, and in the cache.log file I saw this error:
Code:
[2009/09/22 09:05:52, 0] utils/ntlm_auth.c:winbind_pw_check(429)
Login for user [${domain}]\[${user}]@[${pc_name}] failed due to [winbind client not authorized to use winbindd_pam_auth_crap. Ensure permissions on /var/run/samba/winbindd_privileged are set correctly.]
The user that runs squid, which happens to be "proxy" on my server, did not have access to this "/var/run/samba/winbindd_privileged" directory, so the fix was:
Code:
$ sudo chown -R root:proxy /var/run/samba/winbindd_privileged
$ sudo invoke-rc.d winbind restart
The server this is running on has Ubuntu 6.06 LTS installed.