What type of system is this, Windows AD? Bit of a turnaround for you, but we're running ISA/Websense and it's holding back 3500 users from facebook/hotmail etc etc. Can run with quota times to certain sites, based on AD Security Groups too.

Not sure how you're gonna do it with Linux. Be careful as with proxies a way around them it is to disable proxy servers in Internet Explorer, then change primary DNS to an external IP which will let them out - Hopefull that's not possible on your workstations with the help of group policy though.

Surely there are some form of rules that denies access to anonymous http proxies within squid? If not you need to put forward a business case as clearly there is a security risk on your network.

Have fun

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Should have bought an STI