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VSAT Proxy Configuration

I am trying to deploy a transparent proxy to a VSAT link and running into some issues with delay.  Latency a side I can't seem to configure squid to work efficently and was looking for some input on anyone who has achieved this without lossing browsing performance.  Currently I have an older poweredge 933 DP 2500 with 1GB RAM and 2 72GB SCSI Drives as my Squid server.  I use the secondary drive to store the cache and I feel these settings are more than ample for good performance out od squid.  My VSAT link is 1024:512 and runs an average latency of about 550ms.  My major concern is that we basically pay for usage and the network is rather busy so a proxy only makes sence to cut down on unnessisary usage.  I have tweaked the config file and network settings for the squid proxy but still i am getting a lets say 1/2 to 1 second delay before the pages begin to load.  I understand the latency issue but if I bypass the proxy the web browsing is much more fluid.  I am lookinf for input into maybe another proxy or examples of ways to overcome this issue with squid.  I have started to look into sockd http://www.inet.no/dante/ as a solution but would like some input from users who have deplyed a working VSAT proxy with effiecent results.

VSAT ISP|{-------}|Cisco 1811 Router|------|VLAN|-------\Transparent Web Proxy/----|_+network
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2 Solutions
Did you tried NON-TRANSPARENT configuration. That's to be shure, that delays are the same in both cases.
Also please check your squid.conf configuration, like described here: http://www.squid-cache.org/Doc/FAQ/FAQ-17.html
The importent options are httpd_accell_*:

http_port 8080
httpd_accel_host virtual
httpd_accel_port 80
httpd_accel_with_proxy  on
httpd_accel_uses_host_header on
just read following article, it ll definitely help u a lot

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