swap in squid

i am using redhat 9
i compiled the squid 2.5 stable 11
now i give the permission to swap or cache dir as

chown root : root /var/spool/squid
chmod 770 /var/spool/squid

similarly did it for /var/log

now when ever i try this
squid -z

i find this error

2005/09/27 05:00:12| Creating Swap Directories
FATAL: Failed to make swap directory /var/spool/squid/00: (13) Permission deniedSquid Cache (Version 2.5.STABLE11): Terminated abnormally.
CPU Usage: 0.000 seconds = 0.000 user + 0.000 sys
Maximum Resident Size: 0 KB
Page faults with physical i/o: 6
Aborted


so i cant understand what type of permission this squid version wants