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There is no doubt that video-on-demand (VoD) services are very popular these days. However, disk storage is a serious bottleneck limiting the scalability of a VoD server. Disk throughput degrades dramatically due to seek time overhead when the server is called upon to serve a large number of simultaneous video streams. To address the performance problem of disk, buffer cache algorithms that utilize RAM have been proposed. Interval caching is a state-of-the-art caching algorithm for a VoD server. Flash Memory Solid-State Drive (SSD) is a relatively new storage technology. Its excellent random read performance, low power consumption, and sharply dropping cost per gigabyte are opening new opportunities to efficiently use the device for enterprise systems. On the other hand, it has deficiencies such as poor small random write performance and limited number of erase operations. In this paper, we analyze tradeoffs and potential impact that flash memory SSD can have for a VoD server. Performance of various commercially available flash memory SSD models is studied. We find that low-end flash memory SSD provides better performance than the high-end one while costing less than the high-end one when the I/O request size is large, which is typical for a VoD server. Because of the wear problem and asymmetric read/write performance of flash memory SSD, we claim that interval caching cannot be used with it. Instead, we propose using file-level Least Frequently Used (LFU) due to the highly skewed video access pattern of the VoD workload. We compare the performance of interval caching with RAM and file-level LFU with flash memory by simulation experiments. In addition, from the cost-effectiveness analysis of three different storage configurations, we find that flash memory with hard disk drive is the most cost-effective solution compared to DRAM with hard disk drive or hard disk drive only.