I've looked at the code a little bit (Apache 2.0.50), and at first glance, it seems as though proper 304 response handling might not actually be fully implemented yet. Is that actually the case, or am I just missing something.
You should try the APACHE_2_0_BRANCH HEAD, the latest CVS snapshots, or 2.0.51 release candidates at: <http://httpd.apache.org/dev/dist/>
2.0.51 (coming soon) will have a bunch of changes to mod_cache that *may* fix this. mod_disk_cache doesn't do anything worthwhile in 2.0.50 due to a lot of bugs and brokenness. -- justin