Magento Memcache configuration

local.xml

<cache>
  <backend>memcached</backend><!-- apc / memcached / empty=file -->
  <memcached><!-- memcached cache backend related config -->
    <servers><!-- any number of server nodes can be included -->
      <server>
        <host><![CDATA[127.0.0.1]]></host>
        <port><![CDATA[11211]]></port>
        <persistent><![CDATA[1]]></persistent>
        </server>
    </servers>
    <compression><![CDATA[0]]></compression>
    <cache_dir><![CDATA[]]></cache_dir>
    <hashed_directory_level><![CDATA[]]></hashed_directory_level>
    <hashed_directory_umask><![CDATA[]]></hashed_directory_umask>
    <file_name_prefix><![CDATA[]]></file_name_prefix>
  </memcached>
</cache>