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Will the budget ram i am thinking of buying affect the performance/overclockability of the PC and if i get the 512 expensive ram will i have trouble finding the same stick at a later date?
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The ram will only run at the speed of the bad ram. Yes, your overclockability will be ruined by the budget ram as long as it's in there. No, you shouldn't have trouble finding the same stick at a later date, as long as it's not an unreasonably long amount of time (maybe 1.5-2yrs max? not sure).
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would the 512 of quality ram have the same potential as the 1Gb of value ram?
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Depends what you're doing. If you're gaming, the games will load faster, and in general, for low memory requirement applications, the 512 good ram will be better. However, if you like multitasking heavily (for instance I sometimes play 2 games at once) or do lots of stuff on photoshop etc. then the 1gig cheap ram will be way more worth it.
As soon as your ram gets filled to the max with application data, you're computer will begin to slow down immensly, because it has to wait to add more stuff to ram until other stuff has left... otherwise it is reading from the HD which is way slower than ram (someone correct me if i'm not exactly right).
What this means is that if you tend to do a lot of things at once, 512mb will slow you down way too much. But for most people, it is fine. I would suggest going with the 512 and upgrading later. Do you really need a gig of ram?