Privoxy on the router is much better suited for filtering for few devices such as phones / tablets etc.,
It appears it is enabled for all traffic on your installation.
Do go through the Installation Instructions again on
how to assign static ip address to a device and
also iptables rules to be created.
As per how to set the log file,
you can set it through the config file found in your privoxy installation folder.
I intially enabled them but later turned it off as the file tends to get huge after use.
login through telnet / ssh
cd /opt/etc/privoxy
nano config
or
vi config
look for the debug levels section and remove the #
for what level of log output you need
For example::
# The available debug levels are:
#
# debug 1 # Log the destination for each request Privoxy let through. See also debug 1024.
# debug 2 # show each connection status
# debug 4 # show I/O status
# debug 8 # show header parsing
# debug 16 # log all data written to the network into the logfile
# debug 32 # debug force feature
# debug 64 # debug regular expression filters
# debug 128 # debug redirects
# debug 256 # debug GIF de-animation
# debug 512 # Common Log Format
## debug 1024 # Log the destination for requests Privoxy didn't let through, and the reason why.
# debug 2048 # CGI user interface
## debug 4096 # Startup banner and warnings.
## debug 8192 # Non-fatal errors
The log file will be created @
/opt/var/log/privoxy
For the issue of all web pages being blocked,
you can also trouble shoot but going to config.privoxy.org on your
privoxy enabled device and see what level you set privoxy to filter
traffic, i.e., Set to Cautious, Set to Medium, Set to Advanced etc.,
Also refer
http://www.privoxy.org/faq/configuration.html