Dear Logu,

Currently my setup is as follows : -

Wan Link Coming in my router --> With 2 Ethernet Port E0/1 ------> Connected to my squid with a valid Public IP My Squid has only 1 Interface configured, with no outgoing address in squid.conf Wccp2_router & subsequent parameters, my router detects my wccp squid verywell E0/0 ------> Connected to my local lan with valid public IP I have configured the Gre tunnel and set all the parameters correct on my linux box. I am not sure if this is the correct bi-directional path.

...

From what I read and understand I might be wrong "please correct" this is what u mean: Wan-->Router--->squid with 2 interface ---> My Linux box (gateway) ---> client ?

Nevermind about the bidirectional flow, I missed your WCCP setup during my initial post. Since you are using WCCP and gre tunnel both incoming and outgoing traffic should go through squid box. The culprit should be the "outgoing address", set the outgoing IP address (same as the IP of the box) and it should work for you. And infact the error does mean it. -logu