Squid squid squid + DNS issues

[The Umanga]

I decided to keep the default port. When I specify the proxy in the internet explorer I get the error "the requested url could not be displayed" There is no firewall running right now, I am not yet sure about the files that I need to edit to get the walls running. So far I know I know squid is running right I had errors earlier which I managed to fix, the server is browsing using lynx no problem. When I remove the proxy settings I am getting dns error.