Basically L2 cache is Level 2 Memory that is placed on the Processor chip now days. To play most games or use high-end software you need as much cache as you can get on the processor also a lot of RAM. Most tech experts will recommend Pentium 4's because they have 32KB L1 cache (AMD Duron has 64KB) 20 static and like 12 opt cache. The L2 is from 256 up to 1MB depending on the Pentium 4, Celerons have 128 up to 256 on L2 (thats why they are so cheap), Pentium 4 is now starting to embed (with the extreme edition) L3 cache with up to 2MB. A simple example would be like this: You need to get important instructions for a project to your friend. Your friend lives 5 blocks away. If you were to walk there that would be like RAM, RAM has to move into the CPU when the CPU is able to take in more instructions so when your friend is finished with those instructions you have to keep walking there to give him more depending on how many instructions you have. Well to speed things up (L2 or L3 cache) you could call him and give him the instructions or be standing there telling him what to do.
FRIEND(CPU) _ _ _ _ _ YOU 5 blocks away (RAM)
FRIEND(CPU) YOU(L2 cache) on phone or just cm away from him
CPU---------------------------RAM
|
L2 cache
|
L3 cache
I'm sorry if I confused you, but thats an example way of explaining it