In the Stack Overflow podcasts, Joel Spolsky constantly harps on Jeff Atwood about Jeff not knowing how to write code in C. His statement is that "knowing C helps you write better code." He also always uses some sort of story involving string manipulation and how knowing C would allow you to write more efficient string routines in a different language.
As someone who knows a little C, but loves to write code in perl and other high-level languages, I have never once come across a problem that I was able to solve by writing C.
I am looking for examples of real-world situations where knowing C would be useful while writing a project in a high-level/dynamic language like perl or python.
Edit: Reading some of the answers you guys have submitted have been great, but still doesn't make any sense to me in this regard:
Take the strcat example. There's a right way and a wrong way to combine strings in C. But why should I (as a high-level developer) think that I am smarter than Larry Wall? Why wouldn't the language designers write the string manipulation code the right way?