I also posted this problem on the Squishit google groups. Justin reponded:
This is a known bug that is going to
be fixed in an soon to be released
SquishIt 0.6.1. Essentially the ajax
minifier is compressing the files
separately before we are combining
them into one. This can cause the
issue you are seeing. The fix in the
meantime is to use the WithCompressor
option and switch to something like
the YUI compressor temporarily.the YUI compressor temporarily.
Bundle.JavaScript()
.Add("/Scripts/Frameworks/jquery.js").WithMinifier(JavaScriptMinifiers.Yui)
....