Sounds good so far. I just got another squirrel this morning. This one wasn't my best shot though, and it took a follow on arrow. Not a lot of fun to watch for a few seconds. As mentioned, shot placement is key. Pick a spot on the head. If you shoot low, it's still in the vitals. If you're high, no harm done. Use a point of some sort that penetrates (field point, old broadhead, etc) unless you can get a shot where the squirrel is pasted up against a tree or rock. They are AMAZINGLY tough critters and even a steel blunt is likely to just roll them if there isn't a solid backstop behind to make them take the full force of it. Keep a blunt or two in the quiver for shots like that though if you want.
Anyway, that's my tidbit. Great fun to hunt, but try and get close and shoot tight. They are cool little guys and have always been probably my single favorite hunt, even long before I bow hunted. Tasty too.