I think you should try to configure one thing at a time. Disable all other features except page caching and set it to disk enhanced. Then go to the install tab and make sure that your .htaccess file has the same rules as is shown there.
Some clarification please. My .htaccess file is set to 777. What do you mean to make sure the .htaccess file has the same rules as is shown there. Are you referring to the 8 recommended settings of the different tabs; general, minify, etc.?
Right now the contents of my .htaccess file is . . .
DirectoryIndex index.php
# BEGIN W3TC Page Cache core
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^(.*\/)?w3tc_rewrite_test$ $1?w3tc_rewrite_test=1 [L]
RewriteCond %{REQUEST_METHOD} !=POST
RewriteCond %{QUERY_STRING} =””
RewriteCond %{HTTP_HOST} =www.ebestbooks.com
RewriteCond %{REQUEST_URI} \/$ [OR]
RewriteCond %{REQUEST_URI} (sitemap(_index)?\.xml(\.gz)?|[a-z0-9_\-]+-sitemap([0-9]+)?\.xml(\.gz)?) [NC]
RewriteCond %{REQUEST_URI} !(\/wp-admin\/|\/xmlrpc.php|\/wp-(app|cron|login|register|mail)\.php|\/feed\/|wp-.*\.php|index\.php) [NC,OR]
RewriteCond %{REQUEST_URI} (wp-comments-popup\.php|wp-links-opml\.php|wp-locations\.php) [NC]
RewriteCond %{HTTP_COOKIE} !(comment_author|wp-postpass|wordpress_\[a-f0-9\]\+|wordpress_logged_in) [NC]
RewriteCond %{HTTP_USER_AGENT} !(W3\ Total\ Cache/0\.9\.2\.4) [NC]
RewriteCond “%{DOCUMENT_ROOT}/wp-content/w3tc/pgcache/%{REQUEST_URI}/_index%{ENV:W3TC_UA}%{ENV:W3TC_REF}%{ENV:W3TC_SSL}.html%{ENV:W3TC_ENC}” -f
RewriteRule .* “/wp-content/w3tc/pgcache/%{REQUEST_URI}/_index%{ENV:W3TC_UA}%{ENV:W3TC_REF}%{ENV:W3TC_SSL}.html%{ENV:W3TC_ENC}” [L]
</IfModule>
# END W3TC Page Cache core
# BEGIN WordPress
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
RewriteRule ^index\.php$ – [L]
RewriteCond %{REQUEST_FILENAME} !-f
RewriteCond %{REQUEST_FILENAME} !-d
RewriteRule . /index.php [L]
</IfModule>
# END WordPress
You don’t want to leave your .htaccess file with 777 permissions, that’s highly insecure. Also, the install tab of W3TC always contains the rules you need for the various files on your installation, so you can reference that, it updates automatically according to your settings.