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After reading EzyStvy's link and doing a search for some others, it appears that while there is some advantage to the 8mb cache, the larest consensus says you will probably not notice any difference in most real world applications. A few reviews regarded the selling point of the 8mb cache mostly as marketing hype.
The computer store that has the 8Mb 40G sells the OEM version. Off hand does anyone know the length of the warranty on a retail 2mb WD 40G?
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