> 
> What (linux) os kernel settings should i use?
> ulimit stuff and and what scheduler?

The recent Linux kernel 2.6.2x or 2.6.3x are fine enough for running a
squid.

When compiling don't forget to add an option like:

--with-filedescriptors=51200

And before start squid you could set it in the shell: 

# ulimit -HSn 65535

For scheduler, do you mean the loadbalancing method?
If you need session maintance then choose source-hash, otherwise the
round-robin is right also.

HTH.

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