"Using Google Apps engine"

This method is quite difficult but doesn’t require a “webhosting account” account. all you need to have is ‘Google account’.
Step 1. Download Python 2.6.4 from here and Install it. Google Apps engine requires “Python” to Run, which acts as a platform.
(Windows user’s click on “Windows x86 MSI installer(2.6.4)(sig)”)
Step 2. Once you install Python 2.6.4 on your PC, the next step is to download the “Google apps engine SDK” for python (URL):
Step 3. Now launch the “Google apps engine” that you just installed on your PC.
Step 4. This step is to Download “Python proxy Script” which you can load here. After downloading just extract it to “Desktop”.
Step 5. After doing step4 just Go to http://appengine.google.com and sign in with your Google account.
Step 6. Click on “Create an application”(verify your account) and give a name and title to your app and save it.
Step 7. Now go back to your “Google apps engine” that you launched in step3 and click on file >> Add existing application. Now in the pop-up box select the extracted “Python proxy Script” file that you just created in step4 and click “ADD”.
Step 8. After clicking “ADD”, select ‘your_app_id’ and Click on ‘Edit’ icon. In the Application field replace “your_app_id” with the name of your app that you saved in step6.
Step 9. After editing, close the Edit window and Click on “Diploy” icon. Now enter your Google account and click Ok.
Step 10. Now Go back to your web Browser and Enter your App URL for example mine is hacker9proxy.appspot.com. you should now see your proxy server.
Note: Keep your proxy site secret. Never tell your proxy URL to your Classmates or Colleagues because if admin of your organization comes to know about this, he will certainly block or restrict your proxy site.

I hope you are done with your proxy server. If Any doubts or difficulties, your comments are appreciated.