how does SQUID Server work....?? What are the steps for configuring SQUID Server...??

we are not a human library for you, there is plenty of documentation out there, the visolve.com website is very useful, just have a google first and when you have *SPECIFIC* questions, please ask again.

how does SQUID Server work....?? What are the steps for configuring SQUID Server...??

Hello Elvis

Squid is the main unix proxy server he works getting all packages requisitions of a network and saving it from further requisitions to the same.

squid configuration file stays on /etc/squid/squid.conf:
This is the mine simpel squid.conf

#SQUID CONFIGURATION:
http_port 3128 #here you enable the squid port to the other browser access this port you need to put on the other browsers proxy configuration tab.
visible_hostname jean-HP-Pavilion-dm4-Notebook-PC #your hostname
acl all src 0.0.0.0/0.0.0.0
acl manager proto cache_object
acl localhost src 127.0.0.1/255.255.255.255
acl SSL_ports port 443 563
acl Safe_ports port 80 #http
acl Safe_ports port 21 #ftp
acl Safe_ports port 443 563 # https, snews
acl Safe_ports port 70 # gopher
acl Safe_ports port 210 #wais
acl Safe_ports port 280 #http-mgmt
acl Safe_ports port 488 # gss-http
acl Safe_ports port 591 #filemaker
acl Safe_ports port 777 # multiling http
acl Safe_ports port 901 #swat
acl Safe_ports port 1025-65535 # high ports
acl purge method PURGE
acl CONNECT method CONNECT

http_access allow manager localhost
http_access deny manager
http_access allow purge localhost
http_access deny purge
http_access deny !Safe_ports
http_access deny CONNECT !SSL_ports

#to problematic sites:
# acl site dstdomain siteproblematico.com
# always_direct allow site

acl redelocal src 192.168.1.0/24
http_access allow localhost
http_access allow redelocal

http_access deny all

http_access allow localhost
http_access allow redelocal

You need to allow groups after deny others
example:

http_access allow users192
http_access deny users192


Will enable users192 because you had already allow it.
Resuming. All the configuration of squid is on his owner /etc/squid/squid.conf there you could find all that you need to up a secure server.

i have a great book if you interested !