Growing up I learned the "cut across the back and pull both ways method", I always seemed to end up with hair everywhere! Then when a little older I learned to skin out animals for the fur and switched to that method, it's very clean, but is time consuming. (As a side note I have tanned squirrel hides and made several nice small bags etc. from them, the Fox squirrel is pretty tough) About 3 or 4 years ago I stumbled across this method and have been using it ever since. On a head shot gray I can skin it almost as fast as I can take off my own shirt and there's usually no more hare than a store bought chicken!
Here's something I have never seen mentoned on any of the fourms I vist, so I thought I would pass this along. My favorite way to use squirrel is to can them! I boil them, take the meat from the bones, pack this into pint or 1/2 pint jars and follow the recomended home canning process for chicken or rabbit. I can use the meat in stew, gravy, squirrel salid (yes just like chicken salid), BBQ, and my favorite, squirrel pot pie! Basically anything you would use that canned chicken in. Another hint, if you use wide mouth jars you can raw pack on the bone. When you get ready to use the meat, you can't beat this! Gently drain and shake out the pices roll in a little flower and brown them in a little bacon drippings! Melts in your mouth tender!