I have just installed v1.9.4 and it is not downloading videos. I tried with youtube, blip.tv and redtube with same results.
Here is my videocache.log
It creates a new file under tmp dir, but with size=0
Can your machine directly connect to internet? I think your machine is behind another proxy and can't make direct connection to internet. If so, please specify the proxy option in /etc/videocache.conf and restart squid.