Well,
Thanks to all for the great support, now I got squid3 working no issue however the squid-guard does not want to run.
After searching on forums, I found out that you need to re-download the blacklist sites after each reboot. Not sure why? but in any case when I do that it works meaning, both services could show green and running under status–> Services.The interesting thing is when I deny for example Porn it does not do anything and you can still have access to Porn. Is there a special package or even some different approach to block or deny certain site categories?
Thanks,
I had the same issue on pfsense 2.2.1. I solved the problem by putting one item into "target categories" at squidguard. Choose a name for the entrance and put one URL into the URL-List.
Save the item and apply the changes. Download the blacklist again. After a reboot the blacklist is still active.