As Carthik says, the SSH SOCKS option is a great way to quickly tunnel your web traffic. A word of caution for the deeply paranoid: all your DNS traffic is still in the clear. While the web traffic and URLs aren’t sniffable any more, curious people can still get a sense for what kinds of stuff you’re browsing, based on domain names. (And for the really really paranoid: if you’re on open wireless, your DNS lookups could get hijacked, causing you to browse to look-alike sites ready to phish your login credentials.)
Luckily, with SOCKS5 Firefox can control which side of the proxy handles DNS lookups. By default, it does the lookups locally resulting in the scenario above. To change this, set network.proxy.socks_remote_dns = true in about:config. This makes the SOCKS proxy more like a regular proxy, where DNS is handled by the remote end of the tunnel.
Update: Oops, as the title hints, I was going to talk about Squid. But then I didn’t. It’s pretty cool too. Carry on…
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