I'm just running in to the same problem. I have an editing app for a feature class in Server 10. I am forcing the issue by creating or deleting features in another browser window, then calling refresh() on the feature layer in question but am not seeing an update.
It seems like the images for the layer are being cached by the browser which is then being stubborn about releasing them when I call refresh() to update them. When I zoom in or out, the updated data is reflected, but when I zoom back to the original extent, I still see the old data for a while. I'm also seeing similar things happening with Chrome. Has anyone found a workaround for these types of problems?