This threw me for a long time too. The first thing I'd verify is that you're not reloading the page by clicking the refresh button, that will always issue a conditional request for resources and will return 304s for many of the page elements. Instead go up to the url bar select the page and hit enter as if you had just typed in the same URL again, that will give you a better indicator of what's being cached properly. This article does a great job explaining the difference between conditional and unconditional requests and how the refresh button affects them: http://blogs.msdn.com/b/ieinternals/archive/2010/07/08/technical-information-about-conditional-http-requests-and-the-refresh-button.aspx