Forward proxy configuration for Nginx

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.

Posted at Nginx Forum:
http://forum.nginx.org/read.php?2,140078,140078#msg-140078

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