I got Nginx working as a forward proxy to the internet by replacing the backend host with $http_host variable (basically using the host name passed in the request instead of fixed IP address from the conf file).

It seems to be working fine but sometimes the requests time out (from the client). My question is this - Functionally (and protocol compliance-wise and with respect to behavior), is there anything else that Nginx doesn't do that makes it not suited for forward proxy deployment in an enterprise network ? I've read forum answers saying that Squid is better for such purposes but I was hoping to make use of performance benefits of Nginx by installing it as a forward proxy.