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When caching is enabled requests and responses are held in memory on the server for at least the cache duration so caution must be used if you expect requests or responses to be very large or you expect requests to vary widely.
There are two issues that can affect output caching in an ASP.NET 2.0 Web service application.
In ASP.NET 2.0 the HTTP method of the test page has changed from GET to POST. However, POSTs are not normally cached. If you change the test page in an ASP.NET 2.0 Web service application to use GET, caching works properly.
In addition, HTTP indicates that a user agent (the browser or calling application) should be able to override server caching by setting the "Cache-Control" to "no-cache". ASP.NET applications, therefore, ignore cached results when they find a "no-cache" header.