HowTo Allow windows updates through squid

Add the following to your squid.conf, It 'MUST' be added near the top before any ACL that require authentication.

acl windowsupdate dstdomain windowsupdate.microsoft.com
acl windowsupdate dstdomain .update.microsoft.com
acl windowsupdate dstdomain download.windowsupdate.com
acl windowsupdate dstdomain redir.metaservices.microsoft.com
acl windowsupdate dstdomain images.metaservices.microsoft.com
acl windowsupdate dstdomain c.microsoft.com
acl windowsupdate dstdomain www.download.windowsupdate.com
acl windowsupdate dstdomain wustat.windows.com
acl windowsupdate dstdomain crl.microsoft.com

acl CONNECT method CONNECT
acl wuCONNECT dstdomain www.update.microsoft.com

http_access allow CONNECT wuCONNECT localnet
http_access allow windowsupdate localnet

The above config is also useful for other automatic update sites such as Anti-Virus vendors, just add their domains to the acl.