Matt, There is a lot more to Processor's and Ram then just there size/speed.
First, a processor has
1.GHZ - already been explained
2.What kind of socket it is, this refers to the number of pins it uses to connect to the motherboard.
3.Number of Cores - newer processors have 2 or even 4 cores compared to 1
4.Cache - Cache is a small amount of memory in the KB size, like 512 1MB 2MB 4MB or even 8MB that stores CPU instructions, this can have a large effect on performance.
5.Build Architecture this refers to the size and method of creating the processor, older AMD's are made on a 90nm process while Core 2's are 65nm (I believe, sorry if i'm off) and soon to be 45nm. This effects the efficiency of the processor, its heat dissipation(how hot it runs) and its overclockability.
6. Front Side Bus- or HTT on AMD processors is a small bus that carries information from the processor to the northbridge on your motherboard.
it also greatly affects the speed of your processor and ram.
Intel can have front side buses from 200-266-300-400 if overclocking
AMD K9 is generally around 200.
7.Sudo 64bit- this means if a processor can fake 64bit even though its only 32bit, for vista and 64bit applications, although many processors are 64bit already.
8.The other thing that i can think of that separates processors is the architecture of their built in programs, Intel has Wide Dynamic Execution, Smart Memory Access,Advanced Smart Cache,Advanced Digital Media Boost,Virtualization Technology.
AMD has Cool and Quiet and its HyperTransport.
9.Also a big affect on performance is whether the memory controller in the system in on die or not, which means if the memory controller is on the mobo or the processor. Before only AMD had it on die, but Core 2 now has it on die i believe or soon will.
Ram is affected by a few things as well.
1.Theres Size obiviously, 512MB,1gig,2gig,4gig
2.Speed DDR-400 DDR2-566 DDR2-667 DDR2-800 DDR2-1066 DDR3-1333
3.What kind of ram it is, DDR= Double Data Rate DDR2=Double Data Rate 2,capable of better speeds and less voltage, and DDR3=Double Data Rate 3, which is like DDR2 but even more so.
4.Timings, Timings in ram are huge, they're very similar to the cycles of a CPU in that it shows how long it takes for the ram to take in and store information, CLS 5-5-5-5-17 might be a typical rate for DDR2 ram, although there are lower ones available for money, thats probably why a peice of 512 can be worth more than a 1 gig peice.
5.Dual Channel, This refers to the ability of the ram to use the Ram slots on a motherboard more like a highway in that it has 1 channel for outgoing and another one for incoming. This has a huge effect on performance in that 1 gig dual channel will out perform 1.5gigs or even 2 gigs single channel.
This is my understanding of Processors and Ram, so if i'm wrong in any way feel free to correct me