If you are getting “Unable to connect publishing custom string handler for output caching“ error in your event log then it is because of a custom web service you have installed on your Sharepoint server. Reason for this error is that you have a web part on your portal page which use the custom web service. Now, since Sharepoint uses output caching for the web pages to optimize the rendering experience and fast delivery of unchanged pages therefore, publishing infrastructure of Sharepoint tries to access the web service through your web part and due to any issue in your service, it starts generating this error.
Anyway, cutting a long story short, here is the solution:
Edit the web.config of custom web service (Please do not edit your Sharepoint Web application web.config) and make sure you have following under httpModules node which is located under system.web node.
<remove name=“PublishingHttpModule“ />
