How to configure Squid NTLM authentication with NT style Samba PDC

Solution Verified - Updated -

Issue

  • Squid Digest Authentication is not working with Microsoft updates and Virus definitions updates.
  • With Squid Basic Authentication every thing is working fine but it is not secure and internal users (students) can see all passwords with packet sniffers.
  • Is there any way to use Squid NTLM authentication without Windows Active Directory?

Environment

  • Red Hat Enterprise Linux 5
  • Red Hat Enterprise Linux 6
  • squid-2.6
  • Samba
  • Clients - Windows XP with Internet Explorer all version.

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