would it be better to get a processor that has a higher clock speed (2.8Ghz) but lower cache memory (512kb), or a lower clock speed (2.6Ghz) but higher cache memory (1Mb).
The cache is better, you can easily overclock .2 GHz, and if you don't I don't think the performance difference will be that noticeable. I would go with the cache though.
However, are you using an AM2 socket right now or buying a new PC?
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