In case you haven't seen it yet, there is a new devnet atricle that was published this week on "Performance tuning for ColdFusion Application". Its an excellent article written by Kunal from the ColdFusion team. It gives a great insight into how to go about tuning your JVM, how to tune the VM's Garbage collector settings and how to tune different settings in ColdFusion server. It also gives some tips on best practices for writing ColdFusion application from a performance perspective. Overall an excellent article.
However, there is one mistake in the fourth page where it suggests to use File functions instead of File tag which I would like to correct. Actually it should have suggested to use new File functions that were introduced in ColdFusion 8 instead of older File functions or cfile tag.