Caching Imagery using tiling scheme file over 1k TB?!?

[NancyGnanicys]

Publish services - My Government Services | ArcGIS for Local Government

I am trying to configure the Government services application and am trying to publish my own data.  I have attached the screen shot showing my unbelievable estimated cache size, as you can see.  The instructions to cache recommend to move the maximum scale level all the way to 8, however it is already so large an not possible.  The attached is the xml tiling scheme file from the Local Government services site.

Any suggestions on how to improve this?  Ideally I would like to cache three like this.

[JenniferMcCall4]

Are you publishing your service from a mosaic, or an mxd?

[NancyGnanicys]

Publishing from an mxd.

[JenniferMcCall4]

Do you have your extent set to the extent of your imagery in the data frame properties.  If not, it could be estimating that you're creating cache for a larger extent.

What scale are you caching down to?