GET a page from another address?

Looking into /var/log/apache/access_log I found this entry:

66.45.247.147 - - [21/Oct/2007:23:56:46 +0200] "GET
http://www.outwar.com/ HTTP/1.0" 200 7688

My URL or IP have nothing to do with outwar.com, how could my Apache
GET it and answer with a "200", since the page doesn't exist on my
server? Did it go get it and then served it to 66.48.247.147??
Do I have some big hole in my system, which is acting sort of like a
proxy?

Thanks!

Gasp!

....