No, with 0 Ohm I get a perfect 0+5v sine, just as I need. It's the other way round, it'll amplify the signal and clip off the top at about + supply voltage when you increase the resistance in the feedback loop, but it's not exactly square wave, as the bottom part of sine will remain intact. I use clipping schottky diodes to protect the arduino from voltage outside 0+5v range, this way if you increase input signal to say 20v peak to peak, you'll get more square-ish wave in 0+5v (I've attached the schematics)