in case anyone else ever tries to do this with a newer version of SuSe, this site tells you how to configure your SuSeFirewall to use the transparent proxy:
http://www.karakas-online.de/myLinux...-proxying.html
The only difference with SuSe 9.3 is instead of using:
FW_REDIRECT_TCP="192.168.0.0/24,0/0,tcp,80,3128"
I used:
FW_REDIRECT="192.168.0.0/24,0/0,tcp,80,3128"
I restarted my squid service and firewall and it worked great.