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the harddrive is almost always your bottle neck. it is one of the few mechanical parts left in your system's backbone
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I'd agree - anything mechanical does cause latency. The spin of the drive and the time it takes the motor to move the read / write head around does significantly impact speed.
Re-reading the original post, I suppose that I approached my reply from the wrong angle. I was thinking more from an, "I'm building a new computer" point of view rather then a "I'm upgrading my hard drive" point of view.
SCSI drives are WAY faster and generally built better. If you've got the cash, and don't mind a little less space for faster, more reliable performance, go buy one. Or geek out and go raid!!