Sounds like we are battling the same pest. I have them on my squash every year and have vowed to win this time. Here are several thougts for you. I have seen some improvement after spraying with bacillus thuringiensis 3 days ago, but it has not totally solved the problem. BT, by the way, is certified organic. It is a strain of bacteria that specifically targets caterpillars (but won't harm bees). They die in a couple days after eating treated plant material. It is totally inert to people (although some people can have an alergic reaction to the liquid spray). It works wonders on the southern army worms that hit my tomatoes, but I think the pickle worms are somewhat protected by being inside the fruit so it is not quite as effective. I would say that it knocked out about half of them or more, though. The Thuricide brand is sold at Home Depot.
Hoping for a better solution, I called a friend who used to grow squash commercially. He told me that spraying with Oxidate (basically a high powered Hydrogen Peroxide if you aren't familiar with it) or even a 2% bleach solution helps. Apparently, the scent repells the moths when they come to lay the eggs? Or maybe it masks the plant smell that they use to target their host? Either way, he says that it works, so I will try it. He has never let me down before. Plus, both products help reduce mildew and mold on the leaves so its like killing two birds with one stone.
Finally, if you want to be completely free of them without spraying anything you could always build a screen house. The moths are pretty big so even the screen sold for porches will keep them out. The only issue with this, though, is that you have to hand pollinate or try to uncover later in the morning after the moths have gone back to bed but the bees are awake. I guess some people just drape the screen over the squash without much of a frame.