The overall aim of this technique is to reduce the number of subdirectories or files that may be in a particular directory, as most file-systems slow down as this number increases. With setting of "1" for CacheDirLength there can at most be 64 subdirectories at any particular level. With a setting of 2 there can be 64 * 64 subdirectories, and so on. Unless you have a good reason not to, using a setting of "1" for CacheDirLength is recommended.