ilarim

I have tested this plugin with WP 3.1 and got it working with these settings:

• Get the latest version from github
  clone git://github.com/pkhamre/wp-varnish.git
• Add these lines to /etc/varnish/default.vcl:

After backend definition
acl purge {
  "localhost";
}

And inside sub vcl_recv
  if (req.request == "PURGE") {
    if(!client.ip ~ purge) {
      error 405 "Not allowed.";
    }

    purge("req.url ~ ^" req.url "$ && req.http.host == "req.http.host);
  }

• Activate plugin from WordPress admin panel

I have only tried to configure the main blog so the problem with characters is in the main blog. Characters get corrupted every time I enable MU. Before that everything is ok.
On the same service provider I have another account where I set up clean WP 3.0 MU installation for the main blog. I used export/import to migrate 3 blogs in to that one instance and everything works.