FYI, dalli will detect that ENV variable automatically -- you shouldn't need 
to specify the server(s) at all. Here's our dalli configuration (rails3 app, 
yours may vary):

      config.cache_store = :dalli_store, { :namespace => 'll', :expires_in 
=> 30.minutes, :compress => true, :compress_threshold => 64*1024 }

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