I am in the middle of the decision process for a new developer workstation, and one remaining question is which processor to choose, and one of the early decisions is whether to go with Xeon or Core2 processors. (We've already restricted ourselves to HP machines, so we're only looking at Intel processors.)
The main goal of the upgrade is to shorten compile times as much as we can. We're using Visual Studio 2008 targeting .NET 3.5, mostly working on a solution with about a dozen projects. We know our build is CPU-bound. Since Visual Studio can't parallelize C# builds, we know we want to maximize CPU clock frequency - but the question is, do the larger caches of the Xeon line help during compilation, and if they do is the increase justifiable given the tripling in price?