> I stopped squid and restarted again. Cache size is
> reduced to 25 % of
> previous. May be due to this now squid is giving good
> performance.

>From this i guess you have a memory problem. You have to less memory for
your cache or to much cache for your memory.

> Is it necessary to reduce cache size once it reaches
> to particular limit?

No.

> Is changing IDE hard disk to SCSI hard disk will
> improve performance
> for greater cache  size (Since to SCSI's capacity to
> handle more requests simulteneously.)

If you have a disk bottleneck: yes. Otherwise: no.

Hermann

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