Well I did a full reinstall on a new machine and installed 0.3-2 and it works!
I dont know how it works, but heres how I set it up:
1. Installed RPM
2. Under Proxy Users selected "Use Proxy Access Password protected"
3. Added User to the grant access group and specified password.
4. When anyone goes to access the proxy, a popup appears. Enter in Username and password specified in theProxy users panel, and bobs you unle, if that user is on the list, it can get net access, if not it wont. Sometimes when I do this though for some reason I have to hit refresh to get net access after the logon prompt, but it is only happeneing with a win 2000 box.
easy!
Cyrus Bharda