I am running CE1.7 and have a nginx cluster(x3 nginx) running behind a dedicated varnish server. After the initial varnish installation, I can see the varnish info in the header which means its running fine. And then I cleared magento cache and enabled turpertine cache in the admin panel, and put in the right IPs for varnish and backend server(using a separate load balance IP) settings and clicked "save", it applied successfully and saved;however, the varnish doesn't seem to be working normally, as I can cannot find any varnish names in the header anymore.
Attached are my turpentine setting screenshots.
Thanks very much for the help.
these are the other settings I used. looks like varnish is bypassed everytime.