I've got the same problem here, Page Cache on disk (enhanced) shows no error, but as soon as I turn on Page Cache debug, the pages only get served once, with "cache on" at the bottom of the source code, and after that its just a blank page being served. Also, when turning Page Cache Debug on, there is this error msg in the admin:
W3 Total Cache error: It appears Page Cache URL rewriting is not working. Please verify that the server configuration allows .htaccess
Unfortunately disk enhanced page caching will not function without custom rewrite rules. Please ask your server administrator for assistance. Also refer to the install page for the rules for your server.
Technical info:
.htaccess file contains rules to rewrite url http://www.mysite.com/w3tc_rewrite_test into http://www.mysite.com/?w3tc_rewrite_test which, if handled by plugin, return "OK" message.
The plugin made a request to http://www.mysite.com/w3tc_rewrite_test but received:
200 OK
instead of "OK" response.dont know if thats related to the problem.
My htacess files are writeable,