A proxy server is a hardware/software device that sits between your computer (or
multiple computers) and the Internet. A proxy server provides shared access the Internet.
Many computers can share Internet access through a single modem, ISDN connection, or cable
company access device.
For more detailed information on proxy servers try www.winproxy.com
. This site has a free download (try for 30-days) proxy server that is perfect for home
and small office use. Also, there is a good background description of proxy servers.