We have some users who are using Adobe Acrobat to edit .pdf files over WebDAV. There are a couple of issues that we are experiencing.
My questions are therefore
I guess you are using Microsoft Mini-redirector driver (Windows Shell, WebDAV client provided with Windows) to open and edit documents.
This is a Mini-redirector specifics, sometimes it traverses folders and submits other unnecessary requests.
Regarding performance. This may be caused by proxy settings. Please see "Long Delays When Connecting and Browsing WebDAV Server" section here.
This is typically caused by Mini-redirector cache. As far as I know there is no any documentation about how to disable cache in Mini-redirector. There is no real solution for this, you just need to wait for some time until the client cache invalidates.
The server Engine itself does not have any caching options. It just processes the WebDAV request and generates response. It also independent of hosting environment and its settings, such as IIS, HttpListener, etc.
Please examine the WebDAV log file WebDAVLog.txt. By default it is located in \App_Data\WebDAV\Logs. Are there any exceptions in it?