get a pile of books that you can just squat down on practise squatting (without weight) may be 10 reps every other day after a week, remove a book or two and persevere.. patience my friend!
I'll try it with my poufee. And i can hold a stick over my head. Then some big encyclopedias. Im also thinking of getting this book Stretching Scientifically: A Guide to Flexibility Training Thomas Kurz, anyone know if its any good or recomend a better book.
It's also important to play around with your stance width. Try squatting a bit wider, or bring your feet a bit closer. Nick K's got it right. Generally, the best way to get more flexible for squatting, is to squat. Though, I'd recommend 10-15 easy reps every day. Or, you could do something like 2x5 before every weight-training workout.
I did a few tonight with my stance a bit wider and it was easier, slightly. I tried it with my arms above my head that was even harder. I injured my back a while ago trying to one arm snatch a 56lb weight. So i think the strength in that side need building up too.