There's an updated package for squid in the development repository at http://dev.centos.org/. This fixes the problem with squid only having 1024 file descriptors available. The patch was "forwardported" from the squid package in CentOS 3.8.
You get a new configuration variable in squid.conf with which you can control the number of file descriptors available for squid:
# TAG: max_filedesc # The maximum number of open file descriptors. # #Default: # max_filedesc 1024
This package works here under a comparatively low load. So please test this package if you need more than 1024 file descriptors and report any issues or success with this package either here or at http://bugs.centos.org/view.php?id=1603.
The package is at http://dev.centos.org/centos/4/testing/i386/RPMS/squid-2.5.STABLE6-3.4E.13.el4.centos.i386.rpm for i386 and http://dev.centos.org/centos/4/testing/x86_64/RPMS/squid-2.5.STABLE6-3.4E.13.el4.centos.x86_64.rpm for x86_64.
Regards,
Ralph