Thanks for listening to my strange issues. :P
Want to update this thread so that someone else in the future may be able to benefit from it.
It looks like XCache is not compatible with suPHP. If your server is running the apache suPHP module then XCache can't work.
To this end I have switched from suPHP to running php as FastCGI with mod_fcgid.
I am now able to get to the fetching cache part but still am having issues with flushing.
Will keep working on it and will try to ask DBTech for some help as well.
Thank you.
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