The Dutch ISP Wanadoo is going to have a proxy server dedicated to Kazaa.
It will cache 800 GB of files that are downloaded through Kazaa. The goal is to reduce international traffic with is more expensive as internal network traffic. When you download a file, their routers will check if it is in the cache, and if it is you will download it directly from the cache instead of from the actual source.
The cache will be constantly refreshed with new files. According to European laws caching of files is completely legal as long as those files are not kept in the cache longer than 48 hours. In the case of caching, it does not matter if the files are copyrighted or not.