Please note that pdns-server != pdns-recursor.
If it is at all possible for you you should consider separating recursive and
authoritative DNS service to different IP adresses.
-> http://cr.yp.to/djbdns/separation.html

As for the caches, yes PowerDNS server has two caches relevant to your
backends query load, packet and query cache.
-> http://doc.powerdns.com/performance-settings.html

PowerDNS recursor is another process and has its own recursive cache.

You can totally run PowerDNS server without specifying a recursor (recursor=).

For example for a standalone Mail-/Webserver it makes sense to have your
recursive Nameserver, say PowerDNS recursor, or BIND9, bind to 127.0.0.1 and
use that in your resolv.conf and have PowerDNS server listen for authoritative
queries on your 'official' internet facing address.

That way you don't burden PowerDNS server with the additonal load of your
servers recursive queries.

Btw. PowerDNS recursor running standalone works like a charm for many large
mailservers as serveral people in #powerdns (IRCnet) confirmed.

        Stefan
-- 
<RoMo> ich war x jahre emacs nutzer 
<RoMo> UND BIN STOLZ NUN EIN VIM BENUTZER ZU SEIN [tm] 



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