logicuk, I can't see any vB Optimise messages in the debug area, is it even turned on? If you could change the password to something more secure then PM me it, and grant me access to look at your vB Optimise settings I'll gladly take a look.
fattony, could you explain exactly how you encounter the issue? Sounds like a problem with phrases and it may be resolved as a similar bug has just been fixed.
veenuisthebest, I managed to replicate your issue, it seems that XCache haults the script on attempting to flush and the error cannot be silenced or stopped, so I've put a condition in that if the flush is meant to be silent (which it is when editing templates and such), and that your XCache requires authentification (specified by your vB Optimise settings), then the flush will simply skip and not attempt to clear the cache at all. Ofcourse a manual flush can still be achieved through the Flush Cache page, and this will only occur if your XCache requires authentification, for those lucky enough to turn it off the kill cache hooks will work fine with XCache