Lets just say, I will trade 2GB of RAM for extra 4MB of L2 cache. L2 cache does pre-fetch of information for the CPU or i stores away frequently use data in the cache for faster access.
Wow! you will trade 2GB or RAM for extra 4MB L2 cache? It is THAT important?

The reason I am asking is because there were 2 laptops that were on sale at the recently concluded PC Show. See below: (copied from Acer leaflet)
Acer Aspire 5920G-812G25Mn. (@ $1798)• Intel® Centrino® processor technology Intel® Core™2 Duo processor T8100
(2.1GHz, 800MHz FSB,
3MB L2 cache), supporting Intel® Extended Memory 64 Technology (Intel® EM64T) Intel® Wireless WiFi Link 4965AGN (dual-band quad mode 802.11a/b/g/ Draft-N) network connection.
• Genuine Microsoft® Windows Vista® Home Premium.
• Intel® 965PM Express chipset.
• nVidia® GeForce® 8600M GT with up to 1280MB of TurboCache™ (512MB of dedicated GDDR II VRAM, 768MB of shared system memory).
• 2GB DDR II RAM.
• 250GB S-ATA HDD.
• 15.4” WXGA Acer CrystalBrite™ colour TFT LCD.
• DVD-Super Multi Double-Layer Drive (DVD+/-RW).
• Built-in Bluetooth® 2.0+EDR.
• Integrated Acer CrystalEye 0.3 Megapixel webcam supporting enhanced Acer PrimaLite™ technology.
• Dolby® Home Theatre audio enhancement.
• Microsoft® Office 2007 60-Day Trial Preloaded.
Upgrade to Aspire 5920G-933G32Mn. (@ $2298)• Intel® Core™2 Duo Processor T9300 (2.5GHz, 800MHz FSB,
6MB L2 cache).
• Genuine Microsoft® Windows Vista® Home Premium.
• 3GB DDR II RAM.
• 320GB S-ATA HDD.
I asked the promoter there what is the difference between the 2 models, he told me that there is a 6MB L2 cache, which I did not notice earlier after reading the leaflet. I asked if there were other brands that have 6MB L2 cache around. He replied that there is none with the exception of Apple notebooks which have 8MB L2 cache. That was also when I asked why Acer did not upgrade to 4GB RAM and the reply was the limitation imposed by the 32-bit Windows Vista.
IMO, the major difference between the 2 models is the CPU only. The additional of 1 GB RAM & 70GB HDD space is not expensive. But the difference in terms of pricing between the 2 models is a whopping $500! ($0.5k!)