roba
>...Perhaps Charlie can confirm if its custom-templates or templates-custom
Charlie has better things to do than answer that question.
It is templates-custom, which is easily determined by looking at a server
So the revised steps should be
First copy 
/etc/e-smith/templates/etc/rc.d/init.d/masq/35transpoxy to /etc/e-smith/templates-custom/etc/rc.d/init.d/masq/35transpoxy
and then edit the fragment
pico /etc/e-smith/templates-custom/etc/rc.d/init.d/masq/35transpoxy 
change: 
Code: 
$OUT .= "\t-p tcp --dport 80 -j TransProxy\n"; 
to 
Code: 
$OUT .= "\t-p tcp --dport 80 -d ! 200.201.173.0/24 -j TransProxy\n"; 
where ! nnn.nnn.nnn.nnn is the IP I don't want to pass through squid. 
Code: 
#expand-template /etc/rc.d/init.d/masq 
#signal-event post-upgrade; signal-event reboot