For some reason Total Cache does seem to be caching my pages.
Each time I got to the home page, when I view source the Total Cache comment shows that it regenerated the page for this request.
So I turned on debugging and this is what I am seeing:
W3 Total Cache: Page cache debug info:
Engine: disk: basic
Cache key: w3tc_site.com_1_page_e251273eb74a8ee3f661a7af00915af1
Reject reason: Requested URI is rejected
Status: not cached
Creation Time: 0.634s
Content-Type: text/html; charset=UTF-8
X-Powered-By: W3 Total Cache/0.9.2.4
Performance optimized by W3 Total Cache. Learn more: http://www.w3-edge.com/wordpress-plugins/
Minified using disk: basic
Database Caching 6/6 queries in 0.011 seconds using disk: basic
Object Caching 608/613 objects using disk: basic
Served from: site.com @ 2011-09-18 17:47:24
Any ideas what could be going on hear?