OK so assuming it's a cache there is a limit you should force in order to prevent DOS or DDOS attacks that will consume all your valuable resources.
Let start from 0.
You want to test SMP? OK
remove all the notes in the squid.conf because it's distracting the sole purpose of reading these configuration file.
From there more people will be able to read and understand the problem.
For all the backends you will want different visible host name..
assuming you are allowing everybody to do the cache then it's pretty simple to remove all these localnet acls etc. We are talking only on http not CONNECT so just block all of them as a starter. try to use the configuration of the backend in main squid.conf since it has only couple lines that really needed.

Once all the configuration will be in order and cleaned I will be able to take a better look at it.
a small sed\grep should do the trick.
# sed -r '/^(\s*#|$)/d;' squid.conf

Eliezer

<SNIP>

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