i would assume that the 10.1 article (in tandem with the information provided by Jake) would result in desirable behavior in 10.2 as well, because the root architecture is the same as 10.1.
HKEY_USERS\.DEFAULT\Software\esri\Server10.1\DynSeg
HKEY_CURRENT_USER\Software\ESRI\Server10.1\DynSeg\UseOptimization
These do not show up in my registry? Under HKEY_USERS, "esri" isn't an option, and in HKEY_CURRENT_USERS, "Server10.1" isn't an option. I know that it is installed on the machine, I am using it (and it shows up in the HKEY_LOCATION_MACHINE tree). We are using Windows 2008 R2 Standard, for whatever that's worth... Any thoughts?
Here is the information for ArcGIS Server 10.1. I've been trying to get Esri to update the article for 10.2 but so far no luck.
http://support.esri.com/cn/knowledgebase/techarticles/detail/25846
Does this get run on my local machine where I built the MXD? I assume it isn't run on the server (we don't have ArcMap on the server). If my assumption is correct, would I then need to rebuild the MXD and republish the service for the non-caching to "stick"?