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then the processor sits idle 1/2 the time while waiting for memory to be written (since data transfer is 133DDR (266Mbits/S)
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Not quite true as that's what the cache is there for. Also, the bandwidth is much higher than that. If you assume DDR is twice as fast as SDRAM, you get around 1.3gb/s at 133mhz, and 2.7gb/s at DDR266.
But you are right in that it can be a bottleneck in new Athlon systems, and is essentially a legacy device

That said I have just bought 512mb PC133 ram for my new computer as there is no way I can afford 512mb of DDR, and I would prefer to have 512mb PC133 than 256mb DDR