The downside of putting the PA between the client and the proxy, that is: Client <-> PA <-> Proxy <-> Internet is that the PA will only detect the "outer" application and that is "http-proxy". It will not detect whatever the client is actually doing such as youtube, facebook etc (however url-filtering will still work if im not mistaken). Another drawback is that ssl-termination (decryption) will most llikely not work so you will be blind for SSL traffic aswell. Is it completely impossible for you to set it up as the following instead? Client <-> Proxy <-> PA <-> Internet Because this way, given that the proxy is configured for keepsource=yes (or "reflect client ip" or whatever it might be called - that is packet sent from Proxy has the client ip as srcip) you can use UserID out of the box (that is for example if the clients are part of an Active Directory or such which the UserID then can get a mapping from through PAN-agents (either local in PANOS 5.0 or dedicated machines running PAN-agents (which can also be runned directly on the Domain Controllers))). AND you will at the same time be able to use ssl-termination along with proper appid's. In the above example any NATing will be performed by the PA aswell (unless you have some other box closer to the Internet that does this for you).
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