Hi,
For such a small installation it may not be worth the expense.
You need to have one machine dedicated as a proxy server and install the software on that.
The machine should have two network cards. One goes directly to the internet - youwont need to use a router but you could if you want. I assume you have a DSL or cable modem? Plug the first nic directly into it.
The other card is connected to your router or a switch or hub and from there out to the PCs.
You can see that there is no way to get to the internet other than going through the proxy server.
The proxy server would do address translations for you (like your router probably does now) and log all the accesses (which is what you ultimately want)
The other good thing about a proxy server is that you can configure it to have cache. That means that many of the frequently accessed pages from the net become stored locally in this cache and access times are much much better for your users.
We used to use Microsoft's proxy server and have several Gb allocated to this cache.
How you actually proceed will depend on the proxy server software you choose.
As I said for only 5 PCs its quite a lot of work and expense so it may not be worth it in your case.
Cheers,
Tim.