Well the first stage is to install squid using standard existing documentation. We aren't going to be repeating it to you.
as for load balancing, what kind do you really want? as a generic clustered TCP service all standard LVS documents will also apply.
Personally for proxy load balancing, I like the idea of making the client manage this using a hashing proxy.pac script, and deliberately NOT do any HA stuff on the servers, except for maybe trivial IP take over to keep both end addresses available. Makes things much more flexible.
http://naragw.sharp.co.jp/sps/ should be interesting, if it works - can't check from my work location
Linux Virtual Server
