Clarification about Error accessiong sites with Squid

[Babu C <babscontact@xxxxxxxxx>]

As I was struggling to find out what went went wrong
at last I thought of trying Linux Mailing list and
Hope for the best  :)
As I am having a network of Win95 machines I am
configuring a Linux Proxy running Redhat 7.0 with
Squid version - Squid/2.3.STABLE4 , everything went
smooth and I was able to connect the proxy machine to
net and I can access the sites in that But when I try
to access sites from Other machines I get the
following error.

ERROR
The requested URL could not be retrieved

-------------------------------------------------------
While trying to retrieve the URL:
http://www.yahoo.com/ 

The following error was encountered: 

Access Denied. 
Access control configuration prevents your request
from being allowed at this time. Please contact your
service provider if you feel this is incorrect. 

Your cache administrator is root. 

------------------------------
As I tryed my best to figure out what went wrong I
cant see anything wrong , so can anyone plese tell
what may be the problem and I am using ipchains with
the following rules

ipchains -A input -p TCP -d 127.0.0.1/32 www -j ACCEPT
ipchains -A input -p TCP -d 192.168.1.1/32 www -j
ACCEPT
ipchains -A input -p TCP -d 0/0 www -j REDIRECT 8080

and I want to know is there any way I can block all
sites except few(particular ones) using Ipchains?
And whether Squid can act as IRC proxy for clients
like MIRC and ICQ?
Thanx a lot


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