I restarted squid and it comes up ok. But I still get:
With 1024 file descriptors available
2010/01/26 10:27:43| Starting Squid Cache version 3.0.STABLE20 for i686-pc-linux-gnu...
2010/01/26 10:27:43| Process ID 2768
2010/01/26 10:27:43| With 1024 file descriptors available
2010/01/26 10:27:43| DNS Socket created at 0.0.0.0, port 32808, FD 7
2010/01/26 10:27:43| Adding nameserver 196.3.81.5 from squid.conf
2010/01/26 10:27:43| Adding nameserver 200.88.127.22 from squid.conf
2010/01/26 10:27:43| Adding nameserver 196.3.81.132 from squid.conf
2010/01/26 10:27:43| helperOpenServers: Starting 10/10 'python' processes
2010/01/26 10:27:44| Unlinkd pipe opened on FD 22
2010/01/26 10:27:44| Swap maxSize 40960000 + 524288 KB, estimated 864256 objects
2010/01/26 10:27:44| Target number of buckets: 43212
2010/01/26 10:27:44| Using 65536 Store buckets
2010/01/26 10:27:44| Max Mem size: 524288 KB
2010/01/26 10:27:44| Max Swap size: 40960000 KB
2010/01/26 10:27:45| Version 1 of swap file with LFS support detected...
2010/01/26 10:27:45| Rebuilding storage in /var/log/squid3.1/cache (DIRTY)
2010/01/26 10:27:45| Using Round Robin store dir selection
2010/01/26 10:27:45| Current Directory is /
2010/01/26 10:27:45| Loaded Icons.
2010/01/26 10:27:45| Accepting transparently proxied HTTP connections at 172.16.0.1, port 3128, FD 24.
2010/01/26 10:27:45| HTCP Disabled.
2010/01/26 10:27:45| Ready to serve requests.
2010/01/26 10:27:45| Store rebuilding is 0.35% complete
2010/01/26 10:28:00| Store rebuilding is 85.83% complete
2010/01/26 10:28:04| Done reading /var/log/squid3.1/cache swaplog (1173452 entries)
2010/01/26 10:28:04| Finished rebuilding storage from disk.
2010/01/26 10:28:04| 969488 Entries scanned
2010/01/26 10:28:04| 0 Invalid entries.
2010/01/26 10:28:04| 0 With invalid flags.
2010/01/26 10:28:04| 766226 Objects loaded.
2010/01/26 10:28:04| 0 Objects expired.
2010/01/26 10:28:04| 203262 Objects cancelled.
2010/01/26 10:28:04| 0 Duplicate URLs purged.
2010/01/26 10:28:04| 0 Swapfile clashes avoided.
2010/01/26 10:28:04| Took 19.63 seconds (39024.87 objects/sec).
2010/01/26 10:28:04| Beginning Validation Procedure
2010/01/26 10:28:05| 524288 Entries Validated so far.
2010/01/26 10:28:06| 1048576 Entries Validated so far.
2010/01/26 10:28:06| 1310720 Entries Validated so far.
2010/01/26 10:28:06| Completed Validation Procedure
2010/01/26 10:28:06| Validated 1532463 Entries
2010/01/26 10:28:06| store_swap_size = 32693644
2010/01/26 10:28:06| storeLateRelease: released 0 objects
2010/01/26 10:28:59| Killing RunCache, pid 2766
2010/01/26 10:28:59| Preparing for shutdown after 0 requests
2010/01/26 10:28:59| Waiting 30 seconds for active connections to finish
2010/01/26 10:28:59| FD 24 Closing HTTP connection
2010/01/26 10:40:59| Starting Squid Cache version 3.0.STABLE20 for i686-pc-linux-gnu...
2010/01/26 10:40:59| Process ID 3549
2010/01/26 10:40:59| With 1024 file descriptors available
2010/01/26 10:40:59| Performing DNS Tests...
2010/01/26 10:40:59| Successful DNS name lookup tests...
2010/01/26 10:40:59| DNS Socket created at 0.0.0.0, port 32822, FD 7
2010/01/26 10:40:59| Adding nameserver 196.3.81.5 from squid.conf
2010/01/26 10:40:59| Adding nameserver 200.88.127.22 from squid.conf
2010/01/26 10:40:59| Adding nameserver 196.3.81.132 from squid.conf
2010/01/26 10:40:59| helperOpenServers: Starting 10/10 'python' processes
2010/01/26 10:41:00| Unlinkd pipe opened on FD 22
2010/01/26 10:41:00| Swap maxSize 40960000 + 786432 KB, estimated 869717 objects
2010/01/26 10:41:00| Target number of buckets: 43485
2010/01/26 10:41:00| Using 65536 Store buckets
2010/01/26 10:41:00| Max Mem size: 786432 KB
2010/01/26 10:41:00| Max Swap size: 40960000 KB
2010/01/26 10:41:00| Version 1 of swap file with LFS support detected...
2010/01/26 10:41:00| Rebuilding storage in /var/log/squid3.1/cache (DIRTY)
2010/01/26 10:41:00| Using Round Robin store dir selection
2010/01/26 10:41:00| Current Directory is /root
2010/01/26 10:41:00| Loaded Icons.
2010/01/26 10:41:00| Accepting transparently proxied HTTP connections at 172.16.0.1, port 3128, FD 24.
2010/01/26 10:41:00| HTCP Disabled.
2010/01/26 10:41:00| Ready to serve requests.
2010/01/26 10:41:01| WARNING: redirector #1 (FD 8) exited
2010/01/26 10:41:01| Store rebuilding is 0.35% complete
2010/01/26 10:41:14| Done reading /var/log/squid3.1/cache swaplog (1172750 entries)
2010/01/26 10:41:14| Finished rebuilding storage from disk.
2010/01/26 10:41:14| 969488 Entries scanned
2010/01/26 10:41:14| 0 Invalid entries.
2010/01/26 10:41:14| 0 With invalid flags.
2010/01/26 10:41:14| 766226 Objects loaded.
2010/01/26 10:41:14| 0 Objects expired.
2010/01/26 10:41:14| 203262 Objects cancelled.
2010/01/26 10:41:14| 0 Duplicate URLs purged.
2010/01/26 10:41:14| 0 Swapfile clashes avoided.
2010/01/26 10:41:14| Took 13.59 seconds (56399.78 objects/sec).
2010/01/26 10:41:14| Beginning Validation Procedure
2010/01/26 10:41:14| 524288 Entries Validated so far.
2010/01/26 10:41:14| 1048576 Entries Validated so far.
2010/01/26 10:41:14| 1310720 Entries Validated so far.
2010/01/26 10:41:14| Completed Validation Procedure
2010/01/26 10:41:14| Validated 1532463 Entries
2010/01/26 10:41:14| store_swap_size = 32693644
2010/01/26 10:41:14| storeLateRelease: released 0 objects
2010/01/26 10:41:54| Squid is already running! Process ID 3549
2010/01/26 10:59:47| Squid is already running! Process ID 3549
2010/01/26 11:00:06| Squid is already running! Process ID 3549
2010/01/26 11:37:07| Killing RunCache, pid 3547
2010/01/26 11:37:07| Preparing for shutdown after 0 requests
2010/01/26 11:37:07| Waiting 30 seconds for active connections to finish
2010/01/26 11:37:07| FD 24 Closing HTTP connection
2010/01/26 11:37:07| WARNING: redirector #2 (FD 9) exited
2010/01/26 11:37:07| WARNING: redirector #4 (FD 11) exited
2010/01/26 11:37:07| WARNING: redirector #5 (FD 12) exited
2010/01/26 11:37:07| WARNING: redirector #6 (FD 13) exited
2010/01/26 11:37:07| WARNING: redirector #7 (FD 14) exited
2010/01/26 11:37:07| Too few redirector processes are running
2010/01/26 11:37:07| Starting new helpers
2010/01/26 11:37:07| helperOpenServers: Starting 6/10 'python' processes
2010/01/26 11:37:07| WARNING: redirector #3 (FD 10) exited
2010/01/26 11:37:07| WARNING: redirector #10 (FD 17) exited
2010/01/26 11:37:07| WARNING: redirector #9 (FD 16) exited
2010/01/26 11:37:07| WARNING: redirector #8 (FD 15) exited
2010/01/26 11:40:41| Starting Squid Cache version 3.0.STABLE20 for i686-pc-linux-gnu...
2010/01/26 11:40:41| Process ID 2842
2010/01/26 11:40:41| With 1024 file descriptors available
2010/01/26 11:40:41| Performing DNS Tests...
2010/01/26 11:40:42| Successful DNS name lookup tests...
2010/01/26 11:40:42| DNS Socket created at 0.0.0.0, port 32779, FD 7
2010/01/26 11:40:42| Adding nameserver 196.3.81.5 from squid.conf
2010/01/26 11:40:42| Adding nameserver 200.88.127.22 from squid.conf
2010/01/26 11:40:42| Adding nameserver 196.3.81.132 from squid.conf
2010/01/26 11:40:42| helperOpenServers: Starting 10/10 'python' processes
2010/01/26 11:40:42| Unlinkd pipe opened on FD 22
2010/01/26 11:40:42| Swap maxSize 40960000 + 786432 KB, estimated 869717 objects
2010/01/26 11:40:42| Target number of buckets: 43485
2010/01/26 11:40:42| Using 65536 Store buckets
2010/01/26 11:40:42| Max Mem size: 786432 KB
2010/01/26 11:40:42| Max Swap size: 40960000 KB
2010/01/26 11:40:43| Version 1 of swap file with LFS support detected...
2010/01/26 11:40:43| Rebuilding storage in /var/log/squid3.1/cache (DIRTY)
2010/01/26 11:40:43| Using Round Robin store dir selection
2010/01/26 11:40:43| Current Directory is /
2010/01/26 11:40:43| Loaded Icons.
2010/01/26 11:40:43| Accepting transparently proxied HTTP connections at 172.16.0.1, port 3128, FD 24.
2010/01/26 11:40:43| HTCP Disabled.
2010/01/26 11:40:43| Ready to serve requests.
2010/01/26 11:40:44| Store rebuilding is 0.35% complete
2010/01/26 11:40:59| Store rebuilding is 88.37% complete
2010/01/26 11:41:02| Done reading /var/log/squid3.1/cache swaplog (1172750 entries)
2010/01/26 11:41:02| Finished rebuilding storage from disk.
2010/01/26 11:41:02| 969488 Entries scanned
2010/01/26 11:41:02| 0 Invalid entries.
2010/01/26 11:41:02| 0 With invalid flags.
2010/01/26 11:41:02| 766226 Objects loaded.
2010/01/26 11:41:02| 0 Objects expired.
2010/01/26 11:41:02| 203262 Objects cancelled.
2010/01/26 11:41:02| 0 Duplicate URLs purged.
2010/01/26 11:41:02| 0 Swapfile clashes avoided.
2010/01/26 11:41:02| Took 18.63 seconds (41137.06 objects/sec).
2010/01/26 11:41:02| Beginning Validation Procedure
2010/01/26 11:41:02| 524288 Entries Validated so far.
2010/01/26 11:41:03| 1048576 Entries Validated so far.
2010/01/26 11:41:03| 1310720 Entries Validated so far.
2010/01/26 11:41:03| Completed Validation Procedure
2010/01/26 11:41:03| Validated 1532463 Entries
2010/01/26 11:41:03| store_swap_size = 32693644
2010/01/26 11:41:03| storeLateRelease: released 0 objects
