logicuk, could you turn on vBulletin debug mode, and take a look at the debug messages everytime you try to load a page and tell me what you see vB Optimise doing? As said, the only way it will keep adding queries is if it is failing to cache.
veenuisthebest, that solution would work, I assume you get a white page when attempting to flush the cache? Ideally I'd like to make it a little more solid, as in the future I'll probably be adding more places where the cache is killed to contend with new data, if your host could possibly turn on php errors so that you could tell me the error you're getting that'd be great