I am using xcache with lighttpd. I have allocated more, but 128 MB should be more than enough if you only have vbulletin.
Regarding performance gains, let us just say that I cannot imagine my forums running without xcache or this plugin. Come to think of it, I cannot imagine my forums running on apache.
btw, if you are really looking for big performance gains and have some php/mysql knowledge, do try sphinx search. The sphinx implementation for vbulletin is also orban's creation, and it is just unbelievable to say the least.
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