I know we are supposed to start new threads but I have the exact same issue. I had used W3 cache in the past but started having that internal server error issue and nothing worked to resolve it. I switched to Super Cache several months ago.
I figured I would give W3 a chance again after four months in the hopes an update had solved the issue by now. It hasn’t.
Last night I also discovered independently that one workaround is to enable debugging for Page cache. I figured that out before I found this thread.
Like the person above my post I am on Godaddy and have PHP 5.4 installed. Enabling debugging for Page cache is the only workaround I have found but I don’t think that is a good solution since debugging slows things down according to the warning.
I hope the developer will see this thread and realize there is a problem that needs to be addressed. On another note, Opcode APC is an option that can be selected in settings. Is there any advantage to choosing that on Godaddy over Disk or Disk enhanced?
I installed W3 last night and ran Gtmetrix, Pingdom Tools, and Google Page speed and all three are giving me the identical scores I last ran on WP Super Cache. That is strange as you would expect some change for the better or worse, but something different.
Besides downgrading to PHP 5.3 is there any fix for this 500 internal server error?