Any resolution on this?

I am interested in what you found was the cause of increased compiles and increased number of cached plans.

If you are having parameterization problems with a single adhoc update, you may want to look into creating a plan guide for your specific query(S) that force PARAMETERIZATION or if you have access to the code itself you can use the PARAMETERIZATION FORCED query hint.

See the BOL articles below for help.

ms-help://MS.SQLCC.v9/MS.SQLSVR.v9.en/udb9/html/f0f738ff-2819-4675-a8c8-1eb6c210a7e6.htm

ms-help://MS.SQLCC.v9/MS.SQLSVR.v9.en/tsqlref9/html/66fb1520-dcdf-4aab-9ff1-7de8f79e5b2d.htm