This hasn't been easy I tell you
I started presenting these bugs long ago and no one seemed to think it was SME related.
Today I'm using the latest version of sargs and also Dansguardian, so since I pointed sargs to the Dansguardian directory, I no longer care about the files on /var/log/squid. I then made a script to clean this directory:
#/bin/bash
for i in /var/log/squid/*; do
> "$i";
done
which I run every 48hrs (high traffic here at school)
This brought me another problem, since I use the Web interface provided by Dungog.net to manage Dans, it does not restart Dans or squid by itself:
svc -d /service/squid
svc -d /service/dansguardian
svc -u /service/squid
svc -u /service/dansguardian
I hope this helps someone in case they need a 'hack' to get things going...