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I am told that the module smb-auth will do this for you. I don't use NT at all myself so I haven't tried it.
An alternative is the ncsa-auth module which does the same thing using a username database in a file on the squid proxy. That does work well, and has the advantage that you can control a users internet acess independently to their access to the NT server. The only problem is that it means you have two separate user databases to maintain.
No, it's a matter of identifying the little devils not authorising them. You need an identd server on the NT/Windoze side and squid needs to have an identd ACL to make it look up the name. This e-mail is intended for the addressee shown. It contains information that is confidential and protected from disclosure. Any review, dissemination or use of this transmission or its contents by persons or unauthorized employees of the intended organisations is strictly prohibited. The contents of this email do not necessarily represent the views or policies of East Norfolk Sixth Form College, it's employees or students.