I'm still running 1.2, and started a new World right after it came out. My base is on the coast of the largest body of water on the map, there's a large pond outside and a small pond just underground.
I've not seen a single squid.
I've been wondering if biomes have something to do with it... it's snowy biomes that are right around my base. I've also checked the ocean near a desert biome, but only a couple times, not constantly like the ones nearby.
Rollback Post to RevisionRollBack
TNT HATES racism.
Maybe it will help if you whine about it some more.
"Up to 200 hostile mobs and 15 neutral mobs can be on a map at a time" - http://www.minecraftwiki.net/wiki/Mobs
By neutral, they mean Cows, Sheep, Pigs, and squids and maybe chickens if they didn't push me off a cliff....
So just kill every mob you see in sight until a squid spawns in water.