No.
Just disable the proxy under proxy settings. The settings are forced so it doesn't matter if you enable or disable the proxy on your workstations you have to disable it from your server.
Thanks,
I did the following:
/sbin/e-smith/db configuration setprop squid Transparent no
/sbin/e-smith/signal-event remoteaccess-update
/etc/rc.d/init.d/squid stop
Then on each client PC in IE/Tools/Connections/Lan Settings removedd the proxy.
Will test and see what the results are.
Thank you.