My site is back online with the plugin disabled and I am going to try and run it for a couple days and see if we get the 503 errors from traffic. Cache Max age was at 24 hours but I tried 0 (forever) to see if that worked but all it did was hang the site until I was able to get Godaddy support to clear all the 0 byte processes (ending the process on my end did not work) and the site came back up. They did verify it was processes that were causing the 503 error but could not say where they were coming from.
When I installed version 3 I checked my cache size and it was around 350mb. After clearing the most I ever saw it get upto was around 15mb.
Timestamps:
404 page <!-- hyper cache 2014-08-20 02:59:12 -->
Contact us page <!-- hyper cache 2014-08-20 03:04:14 -->
Random page <!-- hyper cache 2014-08-20 03:06:55 -->