Using a Proxy (Squid) will slow down download speed?

[users@linuxforums.org]

I'm running Squid with its basic setup. When IE's proxy connection
setting is configured to use squid, the download speed will decrease
by about 10KB/s. Unchecking the 'use proxy' setting will resolve the
slower download speed issue. 

1) Is there any setting in IE or Squid that I can use to fine tune the
download speed of clients?

2) What do I look out in access.log to check if cached pages are been
successfully served? (Squid automatically cache pages right?)

3) I have 2 PCs, A and B. A downloads a file. After A's download is
completed, B downloads the same file. Will this same file downloaded
by B be retrieved from Squid (intranet speed) or from the internet?

Thanks !
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