Thanks to ixion.
Will try your suggestions this weekend and post back.
Here is my setup if it helps.
Both PCs run MDK 10.2 Would like to keep PC1 filtered from 'net using DG. From what I've read, this setup can be configured a number of ways and I don't know the best/most flexible way.
PC1(192.168.10.1)eth0-> hub <-eth0 PC2(192.168.10.2)eth1 -> DSL modem -> 'net
local ntwrk setup as 'static'---eth1 to modem setup using DHCP
Not once did I read that squid or DG run as services in background. I spent 3 days looking for 'something to happen", like what happens in 99.9999% of applications.
Usually conf files have a bunch of stuff commented out at the beginning of line. This squidconf file has most lines uncommented.
http access and http deny are both listed, and both are uncommented. This implies a conflict. Can only assume file is read from top to bottom and first action? or last action? is taken?
unfortunately, this is non intuitive.
Also, Am assuming I run squid and DG on PC2 only?
Where do iptables fit into this?
This is my default installed squid.conf file and have NOT altered it yet.
http_port 3128
hierarchy_stoplist cgi-bin ?
acl QUERY urlpath_regex cgi-bin \?
no_cache deny QUERY
cache_dir diskd /var/spool/squid 100 16 256
cache_store_log none
auth_param basic children 5
auth_param basic realm Squid proxy-caching web server
auth_param basic credentialsttl 2 hours
refresh_pattern ^ftp: 1440 20% 10080
refresh_pattern ^gopher: 1440 0% 1440
refresh_pattern . 0 20% 4320
half_closed_clients off
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 to_localhost dst 127.0.0.0/8
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 1025-65535 # unregistered ports
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 CONNECT method CONNECT
http_access allow manager localhost
http_access deny manager
http_access deny !Safe_ports
http_access deny CONNECT !SSL_ports
http_access deny to_localhost
acl mynetwork src 192.168.10.0/255.255.255.0
http_access allow mynetwork
http_access allow localhost
http_reply_access allow all
icp_access allow all
visible_hostname
myfirewall@mydomain.com
httpd_accel_host virtual
httpd_accel_with_proxy on
httpd_accel_uses_host_header on
append_domain .gateway.2wire.net
err_html_text
admin@mydomain.com
deny_info ERR_CUSTOM_ACCESS_DENIED all
memory_pools off
coredump_dir /var/spool/squid
ie_refresh on
Thanks for your help