What sort of proxies ?
I run a squid cache/proxy for http,https,ftp
everything else I tunnel through an ssh tunnel.
squid:
http://www.squid-cache.org/
ssh:
http://www.openssh.org/
you can run these locally or run them elsewhere on your network.
As for the anonymity, well your originating IP will be masqueraded by the proxy IP but obviously the proxy will still be on your local network or indeed right on your workstation.
As for the level numbers.. I have never come across them in my life, can you tell me where you saw them ?
An alternative to a proxy is NAT (Name Address Translation) also known as IP Masquerading. This allows 1 or many machines to use 1 network connection on another machine, using IP forwarding on the masqerading box.
NAT HOWTO:
http://www.tldp.org/HOWTO/IP-Masquerade-HOWTO/
hope that helps some. Of course, if you are using Windows then this information will be fairly useless, unless you use a servre running somthing like Linux, FreeBSD, NetBSD, OpenBSD, MacOS X, Solaris then thats fine
