Limiting IE cache

http://windows7themes.net/set-internet-explorer-cache-size-via-ie-registry-or-group-policy.html

Limiting IE cache in registry:
HKCU\Software\Microsoft\Windows\CurrentVersion\Internet Settings\5.0\Cache\Content\Cache Limit
CacheLimit(DWORD)=size in MB

Limiting IE cache in a GPO:

In gpedit.msc, expand User Configuration, Windows Settings.
Right-click on Internet Explorer Maintenance and select(check) Preference Mode.
Expand Internet Explorer Maintenance and click Advanced.
Double-click on Corporate Settings.
Temporary Internet Files can be capped per user and/or per machine.