We have observed a squirrel by our birdfeeders that has a balance problem. He has remained for a couple of hours for the last two days eating spilled bird seed and some snow. When he sits and holds some in his front paws, there is a noticable sway. He also itches his back a lot and has visible loss of hair on his back. We would like to help him, but don't know what to do. I think it is a good sign that he is eating. He can still climb the tree, but hangs by his back legs to scratch while still on the tree trunk. I would appreciate your thoughts about this problem.

It is possible that the squirrel has mange, but more likely it has a fungal infection. Purdue University has a good article at: http://www.agriculture.purdue.edu/fnr/wildlife/newsletter/may05.html

As long as the squirrel is eating on its own and moving about, it should be left alone.