Linux-2.2.n, patch required for more FD?

Squid-2.2STABLE4, Pentium 100, 128MB RAM, 6Gb IDE :-(

Sorry for the nerdy question, I've searched the FAQ and elsewhere
(bandwidth permitting), I've read the notes on 2.0.n kernels etc. but
not found much info on 2.2.n. I've build squid, runs fine, but states it
has only 1024 filehandles. However:

        cat /proc/sys/fs/file-max => 4096.

I tried changing OPEN_MAX in /usr/include/linux/limits.h and
reconfiguring and recompiling, but no change. Do I need a kernel patch?
Do I need to modify header files? Should I use FreeBSD instead?

The Uni here has a single 64K link for some 800 staff and 3000 students.
The link is totally saturated during the day. I'm planning on setting up
2 or 3 small caches at first, then once we have them working and have
some evidence they help, I should be able to get money to buy something
better. If anyone has any comments/experience on this sort of
environment I'd appreciate your comments.

Thanks,

Simon

-- 
Simon Greaves				voice: (+679) 212114
Computer Centre				fax:   (+679) 304089
The University of the South Pacific	email: Simon.Greaves@usp.ac.fj
Suva, Fiji