Some useful links (at least they were useful for me):
Which filesystem to choose for the cache disks: http://conferences.oreillynet.com/presentations/os2002/wessels_duane.ppt
This article helped me a lot: http://www.devshed.com/c/a/Administration/High-Performance-Web-Caching-With-Squid/2/
Besides that, I started with SuSE (7.0) too, but by getting more advanced it always was a pain in the ass when yast overwrote my manually edited configuration files.