Just found this thread woo!
Crat- shove knees out; instead of thinking knees forward think knees out. As if you are trying to make a space under you to go into.
This is probably one of the best squat form videos around: http://www.youtube.com/watch?v=zoZWgTrZLd8
Some squat Mobs on this website under 'squat specific' (Starrets 'squat week' ones are very good): http://www.allthingsgym.com/mobility101/
Found this vid; has a knees out and torso more upright stretch which are basics and absolutely great (combine with the previous ones).
Edit: HOLY FUCKING SHITE Klokov is offering form advice; Crat get on it!
Another good question for Crat: Are you going for high bar or low bar position? Hard to tell from that angle, but I assumed low bar because of your back angle. If it's high bar, your torso is way too horizontal. If it's low bar, you're going too deep.