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iptables virtual interfaces transparent proxy

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http://serverfault.com – Running into an issue with my iptable rule to redirect outbound traffic on port 80 to a squid proxy transparently. Here is my interface information eth0 = internet eth1 = physical interface eth1:0 = 192.168.0.1/24 eth1:1 = 172.16.0.0/24 My iptables rule: iptables -t nat -A PREROUTING -s 192.168.0.0/24 ! -d 172.16.0.5/32 -p tcp --dport 80 -j DNAT --to-destination 172.16.0.5:8080 squid proxy's socket 172.16.0.5:8080 #bind address http_port 172.16.0.5:8080 Issue, while the squid proxy is pingable from an addresson the 192.168.0.0/24 network, when I enable the above iptables rule to turn (HowTos)