Web Proxy for chat, downloads, browsing

For an office of twenty people I need a web proxy for their internet use.  They will be doing chat, searching web sites, and downloading content from the internet.  Can I get help on a web proxy server for the following things?...  -sizing/capacity of the server hardware to procure, software to use (Squid?),  and a link to a guide for web proxy design.

Also, is there any limitation on what chat they can use via a web proxy vs doing chat without a web proxy?   In other words can all chat applications work thru the web proxy?
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madunixConnect With a Mentor Commented:
lately ii have implemented web filter for 750+ using open-source squid with dansgaurdian and blacklist
i installed and configured internet gateway using squid proxy server (RHEL5 64bit) using Dell PE2950 server with 16GB RAM 2x300GB Raid10, which retrieves the users who are allowed to connect to the internet from active directory group via samba server and winbind, the scenario is using NTLM for SSO, thats why we have to configured Kerberos, the gateway is protected with clamAV antivirus, blacklist and dansguardian for content filtering.

my recommendation, get squid and run it on a linux server
mrkentAuthor Commented:
Thank you.  That looks very affordable too.

Now on the client side, they will be browsing/searching the internet, downloading videos and other content, youtube etc, and also doing chat.  With the chat they would be joining live forums for example, or chat rooms may be a better name.  By going thru my web proxy, will they run into any problems?  And are there specific aps to put on the client machine to make this work best (i know obviously IE and/or Firefox, but anything else recommended -chat s/w?) ?

And lastly, I know lots of questions to start the year off, for the configuration of the spuid proxy on the linux server, is there a particular configuration to conceal everything about this proxy to the general public internet?
mrkentAuthor Commented:
mrkentAuthor Commented:
Thanks for your input
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