Socks Proxy Option

I just recently realized the existence of that possibility and I downloaded and installed (its really easy) http://jsocks.sourceforge.net/

So now what I am still missing is a better understanding of that technology ?

Especialy also because I just moved my machine to an internal Net (I configured a new (old) Mandrake 8.2 router) and it gives my main trding computer an Automatic Ip like 192.168...

Not having much experience with those type of IP's I notice dificulties maintaining connections - It could be that were my proxy is standing the default port is also blocked
Or maybe I need to export my Ip in a way I don't know jet

So please some explanations would most likely be usefull for numbers of potential users ...

Thanks