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Best practice for cache_dir

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Hello

I'm using squid in a 200 user environment, processing approximately 50GB of traffic per day. 

Setup:

ESXi host, VM with 2 vCPUs assigned, 2gb ram, 40GB hdd space (stored on a SANS, speed shouldn’t be an issue)

I was wondering what the general opinion was for cache-related settings were in this sort of environment.

Config relevant to caching: 

Cache_mem 300 MB
Cache_dir ufs /usr/local/squid/cache 51200 64 255

A couple of thoughts I had: 

I already know that 51200 is over the total size of the hd assigned ,I need to either lower that value (would performance be hindered by lowering it?) or get a second drive attached and use that. 

So here come a few questions:

For the traffic and setup I have, is lowering this, to say, 25000 64 255 safe to do? 
Would there be any benefit to having it on a separate drive?
Does bigger cache equal better performance in the long run?

Thanks in advance
 



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