@Jeff

I moved ur patched codes (for blog.php) file towards the end - just before readfile() function and it worked much better.

Earlier files were being served through nginx server every time since we were making exit before "Conditional GET" codes.

Now with this change I am able to get "304 Not Modified" as per my expectation (example you can see below)
[code][b]HTTP/1.1 304 Not Modified[/b]
Server: nginx/0.7.62
Date: Sat, 28 Nov 2009 08:12:07 GMT
Connection: keep-alive
X-Powered-By: PHP/5.2.10-2ubuntu6
Content-Length: 27429
Last-Modified: Sun, 22 Nov 2009 20:58:54 GMT
Expires: Mon, 28 Jan 2013 17:58:47 GMT[/code]

--
Rahul Bansal
EasyEngine - https://github.com/rtCamp/easyengine