Hi, Welcome to the forums
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Right, onto business - basically there will be no difference between the two. Bust will be higher on a 300MB/s enabled SATA2 drive but for drives like Seagates, seeing as all have had NCQ since the 7200.7, there is will be no difference between a SATA1 and SATA-II drive. SATA-II drives *might* have 1-2MB/s higher average read due to higher bursts which raise the average but that is about it. Still, I advise to get a SATA-II drive as they do have more features often.
I would agree with you, that a 16MB cache is probably more beneficial for a single drive user than an 8MB and would suggest this as your drive. I would have a look at the Seagate 7200.9 250GB 16MB cache drive - this seems like a good bet - SATA-II, 3.0gbp/s, NCQ (one of the best command queuing chips of all manufacturers), 16MB cache.
Also, on a cost per GB ratio, I believe 200GB upwards is the way to go now.

Right, onto business - basically there will be no difference between the two. Bust will be higher on a 300MB/s enabled SATA2 drive but for drives like Seagates, seeing as all have had NCQ since the 7200.7, there is will be no difference between a SATA1 and SATA-II drive. SATA-II drives *might* have 1-2MB/s higher average read due to higher bursts which raise the average but that is about it. Still, I advise to get a SATA-II drive as they do have more features often.
I would agree with you, that a 16MB cache is probably more beneficial for a single drive user than an 8MB and would suggest this as your drive. I would have a look at the Seagate 7200.9 250GB 16MB cache drive - this seems like a good bet - SATA-II, 3.0gbp/s, NCQ (one of the best command queuing chips of all manufacturers), 16MB cache.
Also, on a cost per GB ratio, I believe 200GB upwards is the way to go now.