I just upgraded to F16 this week as well and dansguardian doesn't work for me. First it addes over a minute to boot time while it waits for the start to timeout. However when I am finally able to login I can see that it is running, however if I attempt to use it it doesn't work.
I see it attempting to access squid but squid keeps failing with these in squid.log :
1334422820.782 49328 127.0.0.1 NONE_ABORTED/000 0 GET
http://www.cnn.com/ - HIER_NONE/- -
I did have to modify my squid.conf after the upgrade but I just put these lines back in like I had with F14:
# Squid normally listens to port 3128
http_port 127.0.0.1:3128 transparent
#http_port 3128
# CJE Adds
visible_hostname eng
cache_effective_user squid
cache_effective_group squid
shutdown_lifetime 2 seconds
For now I have rerouted this computer to use dansguardian on another machine that is still at F14. I guess I will have to wait to upgrade that one until this issue is resolved.