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The faster chip will make barely any difference at all. What will help the most is to upgrade the RAM. 256 MB is far too little to run OS X comfortably. 512 MB will make most things bearable, but I find that I need 1GB at least to run all my apps smoothly. Note I am a developer, and have loads of memory hungry apps open at one time (curse you Java....).
The current revision was introduced on the 3rd of May 2005. This was after Tiger was released. Thus I don't think you were swindled, or short changed.
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