This bug was fixed in the package squid - 2.7.STABLE9-2.1ubuntu3

---------------
squid (2.7.STABLE9-2.1ubuntu3) natty; urgency=low

  * Detect and deal with the situation where upstart has lost track of
    squid. (LP: #717397)
 -- Clint Byrum <cl...@ubuntu.com>   Thu, 24 Feb 2011 10:54:40 -0500

** Branch linked: lp:ubuntu/squid

** Changed in: squid (Ubuntu)
       Status: In Progress => Fix Released

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https://bugs.launchpad.net/bugs/717397

Title:
  package squid 2.7.STABLE7-1ubuntu12.1 failed to install/upgrade:
  subprocess installed post-installation script returned error exit
  status 1

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