A few months ago I decided to create a few new SWF templates for Squeeze 5.  You can find them here:

http://blog.sorensonmedia.com/?p=63

When you have downloaded them, put your new templates here: 
C:\Program Files\Sorenson Media\Sorenson Squeeze\templates  (on PC)
or
Macintosh HD > Applications > Squeeze > Templates (on Mac)

Then open Squeeze and apply a SWF audience preset.  Hit the [+] button to drop down the presets codecs and the Player Options.  Double-click the Player Options to edit the player options window. Go to the Player Templates tab and choose what player template you want to use.

Here are a couple screen shots of the templates:

Beach Pawn

Front Frame

Not too much better, but usable. 

-Jeff