Now the roles have inversed and Linux is now my main box while Windows laptop is secondary. Linux box is the one connected to the Internet. While I yesterday installed FreeProxy for the reverse role, now was the time to set up Linux as a proxy for the Windows box.
Getting a transparent proxy running in Linux was a piece of cake. All it takes is to install squid, squidGuard, and yast2-squid packages. Then, in Yast, go to Network Services –> Squid for configuration.
What I needed to add was another local network, which is not there by default. This is just because of the default network settings on Windows, where my adapter automatically got address 169.254.205.7. So, in Access Control, I added a new ACL group “localnet” for the range “169.254.205.0/255.255.0.0”.
Also, in HTTP Ports, I added the option “Transparent” to the default port 3128. Then, in Windows, simply set this box and port as the proxy settings in Internet Settings and off you go.