veeresh
> I am able to block machines with specific ip's using the bannediplist.
> ....bypassed proxy for local address.
The proxy never gets accessed as you have blocked that workstation IP from accessing it, therefore it cannot be bypassed either.
As far as I know Dansguardian does not have the functionality you require. If you block access to external sites and allow access to local sites then that will apply to everyone, which is not what you want