WP Super Cache

I installed the WP Super Cache, but I have a problem with the settings after I select the “ON WP Cache and Super Cache enabled” button, cached rebuild and don’t cache pages for logged in users. It shows the Mode rewrite rules: (error?)
To serve static html files your server must have the correct mod_rewrite rules added to a file called /home/pankas/public_html/.htaccess You must edit the file yourself add the following rules. Make sure they appear before any existing WordPress rules.

# BEGIN WPSuperCache
<IfModule mod_rewrite.c>
RewriteEngine On
RewriteBase /
AddDefaultCharset UTF-8
RewriteCond %{REQUEST_URI} !^.*[^/]$
RewriteCond %{REQUEST_URI} !^.*//.*$
RewriteCond %{REQUEST_METHOD} !POST
RewriteCond %{QUERY_STRING} !.*=.*
RewriteCond %{HTTP:Cookie} !^.*(comment_author_|wordpress|wp-postpass_).*$
RewriteCond %{HTTP_USER_AGENT} !^.*(Android|2.0\ MMP|240×320|AvantGo|BlackBerry|Blazer|Cellphone|Danger|DoCoMo|Elaine/3.0|EudoraWeb|hiptop|IEMobile|iPhone|iPod|KYOCERA/WX310K|LG/U990|MIDP-2.0|MMEF20|MOT-V|NetFront|Newt|Nintendo\ Wii|Nitro|Nokia|Opera\ Mini|Palm|Playstation\ Portable|portalmmm|Proxinet|ProxiNet|SHARP-TQ-GX10|Small|SonyEricsson|Symbian\ OS|SymbianOS|TS21i-10|UP.Browser|UP.Link|Windows\ CE|WinWAP).*
RewriteCond %{HTTP:Accept-Encoding} gzip
RewriteCond %{DOCUMENT_ROOT}/wp-content/cache/supercache/%{HTTP_HOST}/$1/index.html.gz -f
RewriteRule ^(.*) /wp-content/cache/supercache/%{HTTP_HOST}/$1/index.html.gz [L]

RewriteCond %{REQUEST_URI} !^.*[^/]$
RewriteCond %{REQUEST_URI} !^.*//.*$
RewriteCond %{REQUEST_METHOD} !POST
RewriteCond %{QUERY_STRING} !.*=.*
RewriteCond %{HTTP:Cookie} !^.*(comment_author_|wordpress|wp-postpass_).*$
RewriteCond %{HTTP_USER_AGENT} !^.*(Android|2.0\ MMP|240×320|AvantGo|BlackBerry|Blazer|Cellphone|Danger|DoCoMo|Elaine/3.0|EudoraWeb|hiptop|IEMobile|iPhone|iPod|KYOCERA/WX310K|LG/U990|MIDP-2.0|MMEF20|MOT-V|NetFront|Newt|Nintendo\ Wii|Nitro|Nokia|Opera\ Mini|Palm|Playstation\ Portable|portalmmm|Proxinet|ProxiNet|SHARP-TQ-GX10|Small|SonyEricsson|Symbian\ OS|SymbianOS|TS21i-10|UP.Browser|UP.Link|Windows\ CE|WinWAP).*
RewriteCond %{DOCUMENT_ROOT}/wp-content/cache/supercache/%{HTTP_HOST}/$1/index.html -f
RewriteRule ^(.*) /wp-content/cache/supercache/%{HTTP_HOST}/$1/index.html [L]
</IfModule>
# END WPSuperCache

Rules must be added to /home/pankas/public_html/wp-content/cache/.htaccess too:

# BEGIN supercache
<IfModule mod_mime.c>
<FilesMatch “\.html\.gz$”>
ForceType text/html
FileETag None
</FilesMatch>
AddEncoding gzip .gz
AddType text/html .gz
</IfModule>
<IfModule mod_deflate.c>
SetEnvIfNoCase Request_URI \.gz$ no-gzip
</IfModule>
<IfModule mod_headers.c>
Header set Vary “Accept-Encoding, Cookie”
Header set Cache-Control ‘max-age=300, must-revalidate’
</IfModule>
<IfModule mod_expires.c>
ExpiresActive On
ExpiresByType text/html A300
</IfModule>
# END supercache

Also the “Direct Cache files” error below.

Warning! /home/pankas/public_html/ is writable. Please make it readonly after your page is generated as this is a security risk.

The question is should I just follow what the messages say to do under the Mod Rewrite Rules and the Direct Cache Files?

Thanks