I started using Dos-Deflate,I am catching about 40 IP's everyday, I set the no of connections to get ban to 200 and ban them permananetly. Do you think 200 connections is reasonable numbers? Am I blocking legitimate visitors?
I think that is reasonable. You could go a little bit lower and still be good in my opinion. If you need to allow a specific IP address to have over the allowable limit you are giving, then as of version 0.6 you can add those to a ignore.ip.list.