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1. Is cache the most important thing to think about when looking for speed? RAM? Processor mhz? Hard Drive speed?
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Go for DDR ram if you can. Laptop Hard drives are pretty slow anyway (compared to desktops) so you won't get much leyway there. CPU speed can be a big factor as well. Its a combination of all these. Stuff like the graphics chip and RAM will be a factor as well.
Just go for whatever you think's the best deal.
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2. How do AMD XP processors compare to Intel P4 or M?
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Perfectly. Up to about 2.8 AMD was kicking intel's ass, then with the 3.0 and 3.2 (and HT) the benchmarks panned out a bit, intel in front in some, AMD in others. My advice would be to get an AMD chip unless you're looking at the ultra-high-end stuff.