How big should the Internet Explorer Temp Files Folder be?

Currently I am one of those infamous Dial-Up users at home. I have mine set to be 2.5 gigs but tend to clean it out every week. Have tried the default and most web pages using that take alot of time to load. Seems like 1gig at minimal should be set to for dial up users. It seems to have maximum effect for pages that I visit all the time.

Any thoughts from the people who design and test Internet Explorer?

I also find it to be more productive when it is set not to save itself on the operating system drive.

Have read that default setting is 3 % of disk space. By the way, you should clear the index.dat file regulary.
Take a look at your index.dat file with indexviewer

http://www.exits.ro/dwl/IndexView.exe

I don't have a good recommendation for you, unfortunately. Like all caches, the optimal size really varies by your usage. If you visit the same five static sites, clearly you can get by with a different cache size than you could if you browsed hundreds of sites a day that changed regularly.

What about using an algorithm that stores every page accessed more than x times in RAM, making the chache much more effective. You could use this as an advanced feature, allowing the user to choose wether or not ram caching shall be used and how big that chache should be.