Staffan said:More RAM makes things go faster. The reason is that when you run out of physical RAM, the OS swaps lesser-used portions of memory out to the hard drive ("virtual memory"). Reading and writing to the HD is *much* slower than reading/writing RAM. The more physical memory you have, the less swapping is needed which makes the whole thing run faster.
There is something of a caveat missing in there. Adding more ram often increases the size of your swap file. And depending on your hard drive and its state, this in some instances actually will decrease your performance. Sometimes drastically.
Oh and wait till the new set of HD's come out, a nice 320 GB from Maxtor, that'll push prices lower, as will the switch to Serial ATA.