fragment caching

Hello Frederick and congrats on the wonderful plugin.
Can you please advice me on fragment caching?
I’m using a combination of:
Nginx
Php-fpm 5.3.6
Apc
latest WordPress
dev version of w3-total-cache with:
Page caching (disk enhanced),
Manual minify (disk basic),
DB caching and obj cashing (APC)
CDN (cloudfiles)
all of it hosted on a rackspace cloud server with 512MB RAM.

Everything looks ok so far but I’m stuck at fragment caching.
I want to skip caching for the footer sidebar where I placed a Search terms tagging 2 widget.

I put the following in my template:

<!– mfunc –>
dynamic sidebar PHP code
<!– /mfunc –>

Note: putting this on a single line like in the FAQ doesn’t work!

The site loads just fine now but the widget seems to be static rather than dynamic.
Is there any way I can verify if the fragment caching is working or not? I don’t see any tags in the source code.

Also, does it matter if I use disk enhanced vs. disk basic in regards to fragment caching?

Hope to fix this last glitch. I’m a speed optimization fanatic but I’m in a point where I might break something out of curiosity and the site is already in production.

You know how they say… If its broken, fix it! If its not broken, fix it until it is broken.

Thanks a lot!