In order to enable caching by mod_cache, I believe you need to set the following headers:
Last-modified: (mandatory)
Expires: (optional)
Vary: (desirable)
Any request which has no Last-modified header, won't be cached at all as there is no way for its age to be determined.
These should be rfc-822 date/time values, as made with date('r')
The "Expires" header will tell it when the object expires - it will never cache it after it's expired.
The "Vary" header will tell the cache what header fields it needs to consider to vary the response content, e.g. if you need to vary the contents based on "Accept-language" to provide appropriately localised pages, or "Cookie" to vary by cookie.
Read the HTTP RFCs for more info.
Apache's mod_cache works exactly like a proxy server's cache, except it's built into the server.
Mark