Squid proxy server (performance / configuration)

I've setup squid as a proxy server on one of my servers. It has about 120 IP addresses on it. When it is handling a lot of connections, cpu/mem usage goes up quite high (as one would expect). I also believe I/O is hit hard. I've had to increase the number of file descriptors at one point.

My question is, by default, is squid caching all of the requests users are making through these IP addresses? If so, is this necessary? Is there a way to disable it?

The entire goal of this squid installation is simply to provide a proxy/tunnel to users, not improve website performance or anything. Maybe I am wrong but isn't writing to cache files unnecessary and just wasting resources?

I just want to clarify this before I end up having to buy a new server.
mcaincAsked:
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Sanga CollinsConnect With a Mentor Systems AdminCommented:
You can disable caching for a squid proxy. i use the following for my squid proxy server. I set it up with dansguardian to filter web content so i didnt need the caching and only wanted the filter. i use the following commands in the config.

cache deny all
cache_dir null /tmp

This will prevent caching as well as eliminate the need for a cache directory. You can also read more details on the squid faq. There is also a usefull option to prevent users from dowloading large files which may help your overall performance.

http://wiki.squid-cache.org/SquidFaq/ConfiguringSquid
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mcaincAuthor Commented:
Thanks that's what I was looking for!
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