I have an HTTP Handler set up which accepts a GUID parameter and returns the image from the file system.
This image will not ever change; the backend program will generate a new GUID if it does. As such, I want the image to always be cached.
Is the correct way to do this to set a status code of 304 (not modified) from the HTTP Handler?
I would recommend you setting proper HTTP response headers in order to indicate to the clients that the contents will not change and could be cached: