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SSH tunnel as proxy is easier and simpler to use if you have a VPS.

Setup the tunnel: ssh -D 8080 vv@xx.xx.xx.xxx

Change your system proxy settings: Socks proxy, 127.0.0.1, 8080

Done!

Yup, even works using putty.exe on Windows (http://www.foxhop.net/ssh-tunnel)

And with PAC JavaScript files one can redirect only specific hosts to ssh or redirect to different ssh connections.