As coincidence would have it, I've also been working on a hosted memcached solution for use on the Linode private network (currently only in Newark). So, if you were interested in enjoyaol's post, but have a node in Newark, rather than Dallas, check this out:
http://alittletothewright.com/index.php … inode-lan/">http://alittletothewright.com/index.php/2010/09/memcached-instances-on-the-linode-lan/