download and install pam_auth from the follow:
http://www.drbig.co.uk/downloads/Mitel-SME/Squid-Authenticate/tmp-mitel-pam-auth-0.1-1.noarch.rpm Now edit the custom template:
#mcedit /etc/e-smith/templates-custom/etc/squid/squid.conf/89AuthAdd
and add these two lines after the line that says REQUIRED
acl banned proxy_auth user1 user2 user3
http_access deny banned
where user1 user2 etc are valid e-smith users
rebuild the template
#/sbin/e-smith/expand-template /etc/squid/squid.conf
restart squid
#/etc/rc.d/init.d/squid restart
Make sure that you tell your browser to use the proxy server or it won't work.