This isn't a fix, but I can tell you why it isn't working and how to get SquidGuard back running. If you check out:
/etc/squid/squid.conf
:you'll see two "redirect_program" entries - one for SquidGuard and one for Windows Update Cache. The Windows Update Cache one is first so...
To get SquidGuard working again, edit:
/etc/e-smith/templates-custom/etc/squid/squid.conf/11Windowscacheflow
:and comment out the two lines (put # in front of them). Then do:
/sbin/e-smith/expand-template /etc/squid/squid.conf
:and restart squid:
service squid restart
:Your SquidGuard should now be working.
Maybe there is some clever person out there who can edit the Windows Update Cache redirector perl script to use SquidGuard to fetch url's that aren't Windows Updates, but alas, that isn't me...