Plz sockisfy me!

I have a couple of questions to ask regarding the Socks protocol. I am hope to clear this out in my discussion with you guys.

I really do need to sockisfy myself (and get pass through this *hit) once for all

Question#1

Can i test a socks server/proxy setup with a computer having only 1 NIC having the socks client and socks server running on the same machine ?As with my experience using [Dante] to set up socks server and when i entered the following string in ./sockd.conf file external:10.2.3.4 (external IP to be used for the socks client). When i run the server with socks -d i got the error which was something related to not being able to bind to the given address.However when i changed the external address to loopback address it worked fine.Does it disapproves the point i made earlier or there is more to it!


Question2#
Whats the ideal scenario i could have with 2 firewall (Juniper) 2 machine both running windows xp? How could i able to test the whole theory thing which says that socks can allows clients to make transparent communication with the host applications on the internet.As what im thinking i can make a small subnet for the testing purposes but em not sure that when the connection leaves my test firewall would it be able to bypass the main college firewall unless that too is configured to allow socks connection?