The 9800gtx has a 256-bit memory bus, which limits the amount of memory bandwidth that the gpu can use. Basically, if you compare a card with 896mb of ram and a 448-bit bus (gtx 260) to a card with 1gb of ram on a 256-bit bus, the card with the wider memory bus will get you more memory bandwidth throughput. The G92 gpu used in the 9800gtx wasn't really designed to use a full 1gb of memory, nor was the 256-bit bus. Remember, they've been using the 256-bit bus since the Geforce FX line or earlier, so it's not designed to handle that much memory.
Bottom line: 1gb of ram on a card with a 256-bit bus is mostly a waste. Go with a gtx 260 if you can afford the extra few bucks, or go with a 512mb version of the 9800gtx. My current card is a 9800gtx equivalent with my overclock, and I'm pretty happy with it for my gaming at 1680x1050 resolution. If you're going to run a higher res than that, go with with a gtx 260 or better. Your anti-aliasing and antistropic filtering will be limited a little bit by the 256-bit bus in high-end games like Crysis, Far Cry 2, etc..
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