The Future 

If you've already set your mind on a Super7 Motherboard + K6-2 combo, the K6-2 350's $30 price increase over the 333 is well justified if you factor in the possibility of a successful overclock to 450MHz.  Don't get your hopes up though, the limited publication of astounding success in this area should keep your minds a bit more than skeptical.

As far as being an upgrade from scratch, the recommendation here clearly goes to the ever-so-popular, wait another month and see.   AMD is planning something with their K6-2 400 which should, both, drive prices even lower for the normal K6-2 processors, and give you a more enticing offer for a Pentium II equivalent at a lower cost. 

Die hard gamers will want to stay away from the Super7 platform as AMD has yet to summon the support they promised for their 3DNow! instruction set, what good is 60 fps in Quake if 30 fps in Half-Life is all you can expect?  The Celeron A offers an equal price, for the standard in gaming performance when it comes to Pentium II-class systems, and for the true spender, the Pentium II is still at the top of the money tree. 

The K6-2 350 ends up being a wonderful processor for a high-end, low-cost, system, especially with the price of decent Super7 motherboards ranking in around the $90 level.  As the heart for a < $1500 system, the K6-2 350 does everything you could possibly ask for, and more, however as the heart for a $2500+ system...I'm sorry to say, AMD had better crank that K6-3 out soon, as Intel comes out on top in that market. 

The Test
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