When a cached file is written to the cache directory it is chmodded 0600 and owned by squid:squid. Thus apache can't read the file.
System is a Fedora 10 and videocache has been installed via RPM. SELinux is disabled.
The permission should be 0644 instead of 0600. Can you please cross check. And make sure your selinux policy is not interfering with videocache.
Thank you for considering videocache :)
I've rechecked. The files get the correct permissions when they are moved to their final destination. I only saw the files in the tmp dir which are chmodded 0600. This is probably the correct behaviour.