If /usr/local/squid26s9TP/var/logs is given a group writable permission orif the PID file is given at /var/run which is owned by root:root then the issue disappears.Odd.. is there perhaps a selinux policy or similar playing ghosts with you?
SElinux is disabled on my system. I have tested on both FC5 and FC6 and same problem. Let me try somemore things and will post you.
Thanks for your response-logu
