Could you update us as to what the problem is with response times and server errors? We'd all like to understand it and have some idea as to when things might return to normal.
If clearing the cache gave you good results, then I'm now suspicious about what is being put in your cache by TER that results in so much delay in reading through it? Performance of a single website should not be a factor of your cache. If cache is a culprit, all web sites would be impacted unless that single website is doing something really funky.
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