Proxy and Stronghold 3

I am trying to setup a plain proxy server to serve many users and to cache documents.

# Proxy Server directives. Uncomment the following lines to
# enable the proxy server:
#
<IfModule mod_proxy.c>
    ProxyRequests On

    <Directory proxy:*>
        Order deny,allow
        Deny from all
        Allow from .xwave.com
    </Directory>

    #
    # Enable/disable the handling of HTTP/1.1 "Via:" headers.
    # ("Full" adds the server version; "Block" removes all outgoing Via: headers)
    # Set to one of: Off | On | Full | Block
    #
#    ProxyVia On

    #
    # To enable the cache as well, edit and uncomment the following lines:
    # (no cacheing without CacheRoot)
    #
    CacheRoot "/export/home/stronghold/var/cache"
    CacheSize 5
    CacheGcInterval 4
    CacheMaxExpire 24
    CacheLastModifiedFactor 0.1
    CacheDefaultExpire 1
#    NoCache a_domain.com another_domain.edu 
</IfModule>

I have pointed my browser to the server but got the following message.

Proxy Error
The proxy server received an invalid response from an upstream server.
The proxy server could not handle the request GET http://www.google.ca/.

Reason: Could not connect to remote machine: Connection timed out

Any suggestions? Any other tips when setting up the proxy server on Solaris 8?

Thanks  For the help.