[squid-users] httpd_accel newbie question?

Hi All

I am having problems with running squid in httpd_accellerate mode.

I have the following settings in my squid.conf:

httpd_accel_port 80
httpd_accel_host otherhost.mydomain.com

squid server ip is 192.168.0.1
otherhost.mydomain.com ip is 192.168.0.2
my workstation ip is 192.168.0.3

From my workstation, I can hit the squid server on port 80 and I get redirected to otherhost.mydomain.com, this works allright.

BUT...Otherhost.mydomain.com contains static pages, with a few images. I am seeing in the squid access log file that those images do not get cached, I'm getting all TCP_MISS/304...

I found in faq that 304 status is NOT cacheable:

---
All other HTTP status codes are NOT cacheable, including:
...
  206 Partial content
  304 Not Modified
...
---
Is this the reason why those images do not get cached? How does the webserver decide that a type of object is 304 / 200 / ?
Thanks for your help
Christian.