After that I restarted memcached, httpd service. Next I am unable to access my site. If I do not use memcache it is running fine, once i enable memcache it does not run.
I think you will have to debug this in pieces.
a) Write plain test.php to test if memcache is running and behaving normally b) Write Drupal bootstrapped test.php and check if memcache is configured correctly in Drupal and you are able to access memcache functions c) In Drupal bootstrapped test.php you will have to check if Drupal caching functions work correctly with Memcache and if not debug it from there.
Thanks Anoop
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