Thanks for the quick response.
Well after completely removing it and reinstalling it, my pages are now loading, but they are not being compressed with gzip at all.
in fact, my yslow and pagespeed scores got worse after turning on the plugin.
All tests that I run either through gtmetrix.com and http://www.gidnetwork.com/tools/gzip-test.php indicate gzip compression is NOT enabled.
In fact, even caching appears to not be working according to the debug output. I am testing from a different browser where I am NOT logged in at all.
Is there something Im missing? I haven't messed with the settings and left them at default for now.
Here is the new debug information.
W3 Total Cache: Page cache debug info:
Engine: disk (enhanced)
Status: not cached
Creation Time: 1.030s
X-Powered-By: W3 Total Cache/0.8.5.2
Set-Cookie: wpmp_switcher=desktop; expires=Sat, 28-May-2011 16:39:23 GMT; path=/
Content-Type: text/html; charset=UTF-8
X-Mobilized-By: WordPress Mobile Pack 1.2.0
Link: <http://wp.me/pxEmp-7F>; rel=shortlink
Expires: Fri, 28 May 2010 17:39:24 GMT
Last-Modified: Fri, 28 May 2010 16:39:24 GMT
Cache-Control: max-age=3600, public, must-revalidate, proxy-revalidate
Vary: Accept-Encoding, Cookie