The logrotate script for squid at /etc/logrotate.d/squid won't rotate the squid log files. Its looking for the file /var/log/squid/squid.out I think that file only existed for older versions of squid.
Squid now logs to /var/log/squid/{access.log, cache.log, store.log}. I replaced /etc/logrotate.d/squid to reflect this change. I also fixed a pre-install script that would give errors if any of /var/{log/squid,spool/squid} were not found upon installation. Fixed SRPM is in: /home/saqadoc/dale/SRPMS/squid-2.2.STABLE3-2.src.rpm
Built in dist 6.1.