Ok so if he decides to buy those RAM from microcenter, then he would have $85 dollars left after the upgrade.
I'm pretty sure the OP will want to upgrade to 4GB of RAM, 2GB is too little these days.
To me $300 is worth it, I've used a 2.26GHz and a 2.53GHz I can tell a big difference between the two.
Also like someone mentioned earlier that the CPU cannot be upgraded so might as well go the higher CPU route. I mean whats $300-$400 dollars in 3-4 years anyway? Might as well get the machine that will fetch a better price in the future and be able to dump it quicker as well while getting a overall CPU boost.
I guess we've all been spoiled to think 270MHz is nothing these days.. But dont forget, 270MHz was a full working desktop pc in the past. I think 270MHz is kind of alot actually.
I'm kinda curious. How can you really tell the difference. Most times it shows approximately ~5% improvement in real world applications. ie the thing will finish in 19 seconds instead of 20. I would say that most people can't tell with a stopwatch.
Will the machine really fetch a better price in 3-4 years? not 300-400$ more I can tell you that. maybe 50.
Also 270mhz is not alot if you look at the over all machine speed. The cpu is not the bottleneck in performance here for most things. It's HDD and memory speed. Also 270mhz is approximately 11-12%. And realistically only 5% performance improvement, since the bottle neck is not the cpu typically, ie how often is your CPU 100% loaded.
I think another way to look at it is this way.
I can get a machine 95% as fast for 300-400$ less. A 5% increase in overall performance is about 60-80$ per 1% improvment. wherase the first 95% cost about 11$. Now people dismiss 300-400$ over 3-4 years as insignificant. Let me propose it this way. How much resale value is there? I'm going to use gazelle to do a rough estimate (since it's easy for everyone to use) Mind you this is nowhere near 3-4 years old though so the difference would be less.
Just as an example, I'm going to take the unibody aluminum macbook, precursor to the 13inch released 1.5 years ago. I actually owned the 2.4ghz model. (note prices would be higher if you sold on ebay or craigslist by about 100$ in my experience, but you'd have to do it youself) The original price was 1299 and 1599. And the 2.0 didn't even have a backlit keyboard.
2.0ghz = 515$
2.4ghz = 631$
Mind you this is 400mhz more, and had an additional backlit keyboard. But your resale difference is 116$
If you took the 300-400$ you would save, and add the sell price you could buy a new unibody 2.26ghz pro. Which is actually faster than the 2.4. I know because I owned both and benchmarked them. The later core revision is faster at a lower frequency than the older core. It surprised me too, because I thought I would have a slightly slower laptop. But I gained the new 7 hour integrated battery and a much much better LCD display.
So you can choose to pay 300-400$ for 5%, if that's what you chose. Or you can upgrade again sooner to a machine with much better specs than the high end machine you bought before for the same money basically.
If anyone ever told you to invest 300-400$ in something that would pay 116$ in the future... I'd think people would not be so keen to jump on it.