You may want a look at the following discussion too ...
http://www.fedoraforum.org/forum/showthread.php?t=93
... and about squashFS, see the developer:
http://squashfs.sourceforge.net/
... which I see you've done. basically, if the developer dosn't have anything more recent that 2.1-r2 then I don't see how anybody else could. Here's an intreguing note:
http://www.kerneltraffic.org/kernel-...50103_290.html
(You'll have to look well down this page to find squash reference.)
BTW: Some freindly words...
Could you edit your profile to show your distro and some idea of location - it honestly helps
Your subject line is misleading: you don't want to know about making a FC3 live CD, you want to know about "where to find "squashFS" for the 2.6.11 kernel". So
that should have been your subject line perhaps?
Can you imagine how annoying it is to see a subject line, do a quick check to make sure you know what you're talking about, then discover that the poster is asking a completely different question?