I have MOSS 2007 running on a single server. We are currently having a problem with the BlobCache, when it is enabled all the images it caches are displayed as red Xs on our pages. (The URL we access the website with has been added to the AAM collection) The question is, do I need BlobCache enabled if we are running SP on a single server with both the database and BlobCache on the same disk? Would there be any performance loss from having it disabled?

You should still see some performance loss because SharePoint/IIS will first look in the BLOBCache for the images before going to SQL Server to get them, but given that it's a single server solution, the loss may be small. Make sure that you've cleared the blob cache before deciding to axe it alltogether. Clearing it may solve the problem. Start here: http://blogs.msdn.com/b/maximeb/archive/2008/08/13/how-to-really-clear-the-blobcache-on-all-servers-in-the-farm.aspx I trust that answers your question... Thanks C http://www.cjvandyk.com/blog

Unfortunately clearing the BlobCache didn't work. We haven't as you suggested noticed any significant performance impact since disabling the BlobCache so we will be leaving it that way until we can find a solution to why it isn't working.