diff --git a/network/squid/squid.conf b/network/squid/squid.conf
index 6827dfd08..04f6ac68d 100644
--- a/network/squid/squid.conf
+++ b/network/squid/squid.conf
@@ -2,6 +2,7 @@
 # This copyright note is auto-generated by ./scripts/Create-CopyPatch.
 #
 # Filename: package/.../squid/squid.conf
+# Copyright (C) 2011 The OpenSDE Project
 # Copyright (C) 2004 - 2006 The T2 SDE Project
 # Copyright (C) 1998 - 2003 Clifford Wolf
 #
@@ -14,8 +15,14 @@
 # --- SDE-COPYRIGHT-NOTE-END ---
 
 if [ $prefix_auto = 1 ] ; then
-        prefix="opt/squid"
-        set_confopt
+	# use a dedicated sysconfdir instead of installing into /etc	
+	sysconfdir="$sysconfdir/$pkg"
+	# install archtecture independent data into /usr/share/squid
+	datadir="$datadir/$pkg"
+	# default location for squid logs.
+	var_append extraconfopt ' ' "--with-logdir=$localstatedir/log/$pkg"
+	# default location for squid PID file
+	var_append extraconfopt ' ' "--with-pidfile=$localstatedir/run/$pkg.pid"
 fi
 
 # uncomment this to select non-standard storage io modules or replacement policies;