1. Go to Edit, Preferences, Network tab and find your Disk Cache Location. (example: mine is 'C:\Documents and Settings\Administrator\Application Data\SecondLife' on windows XP)

2. Find the Disk Cache Location on your harddrive by following the path.

3. Create a folder in the Secondlife folder, name it Cache.

4. Click Set button and redirect the Disk Cache Location path in Preferences to the folder you just created.

5. Click Reset button.

6. Click Clear Cache button (by the Disk Cache Size on Network tab)

7. Relog

8. Search in your inventory for a word that is not in your inventory (like: polywog) to force a complete search.

Thank you Shi Streeter for this tutorial