When I run 'rpm -qip squid-config-0.2-2.noarch.rpm', I see:

Name        : squid-config                 Relocations: (not relocateable)
Version     : 0.2                               Vendor: Red Hat, Inc.
Release     : 2                             Build Date: Mon 27 May 2002 02:41:59
AM EDT
Install date: (not installed)               Build Host: astest
Group       : Application/System            Source RPM: squid-config-0.2-2.src.rpm
Size        : 258720                           License: GPL
Packager    : Red Hat, Inc. <http://bugzilla.redhat.com/bugzilla>
URL         : http://www.redhat.com
Summary     : A GUI configurator for squid.
Description :
A GUI configurator for squid.

The "Group" should be "Applications/System", not "Application/System".  Leaving
off the "s" on Applications causes the package to appear in a separate package
group in Anaconda's individual package installation screen.