After running for a few days this appears to be having a positive effect on keeping my load in check - and those pesky "server too busy" messages are a thing of the past.
I also offloaded the images onto another domain which I am running thttpd on (on the same server as apache); this appears to be having a dramatic effect during peak times where 700+ users are online - my server load is half what it was before offloading and using this mod and my page generation times have been cut in half.
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