Squid expected behaviour - MISSes?

Hi,

I installed recent squid-2.3.stable3-src.tar.gz for first time on
Linux Redhat 6. The linux box has two NICs, one of which
is a gateway to internet, the other of which is a private home
network (192.168.1.0) with private DNS in .home domain
forwarding to internet DNS (192.168.1.1 is the linux box).

Squid is binding only to the localhost and private interfaces so
the cache is not accessible from the outside.

Its running, and works serving proxy requests on port 3128,
but it seems that every request is MISSing and it gets the data
direct from the internet every time.

Eg from reply:
    X-Cache: MISS from daves.home

Eg from log:
960856074.607 2122 192.168.1.2 TCP_MISS/200 10550 GET http://www.dehaa.sa.gov.au/ - DIRECT/www.dehaa.sa.gov.au text/html

I checked the FAQ - couldn't find anything related.

I would have thought that once a request has been made,
subsequent requests to the same URL would have come from
cache - but no, even when I telnet to port 3128 and give it:
    GET http://www.dehaa.sa.gov.au/ HTTP/1.0

Any ideas?

Below is the config:

http_port localhost:3128
http_port 192.168.1.1:3128
cache_mem 8 MB
cache_dir ufs /usr/local/squid/cache 100 16 256
acl manager proto cache_object
acl localhost src 127.0.0.1/255.255.255.255
acl all src 0.0.0.0/0.0.0.0
acl allowed_hosts src 192.168.1.0/255.255.255.0 127.0.0.1/255.255.255.255
http_access deny manager all
http_access allow allowed_hosts
http_access deny all
icp_access allow allowed_hosts
icp_access deny all
cache_mgr david@pastornet.net.au
cache_effective_group nobody
visible_hostname daves.home

--
Regards,
-- Dave Campbell