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Computers these days have so many different buffers and caches that it becomes difficult to keep track of them all. In many respects a buffer and a cache are essentially the same thing. Both involve using a chunk of memory as a middle-ground between one component and another. In the case of the disk buffer, it's a bit of memory used to temporarily store data on it's way to wherever it's going, like the processor.
So how can it enhance performance to have the data make a pitstop in memory? Here's why. Your processor technically can only do one thing at a time, so it bounces around from task to task processing a little bit of this and a little bit of that. If the data on the hard drive had to be sent directly to the processor, this would cause a problem. Either the processor would have to stop everything else to concentrate entirely on processing the data coming from the hard drive, or the hard drive would have to stop transferring data and wait it's turn. So the disk buffer allows the hard drive to continue sending it's data while the processor is off doing other things.
The disk buffer tweak allows you to change the amount of memory Windows uses as a disk buffer. Generally there's little reason to use a small buffer unless you don't have alot of memory to spare. But since the maximum disk buffer is only 2 megabytes, probably even the most memory-starved computers can manage a decent sized disk buffer.
Also, there's a setting to create a small swap file buffer. This can allow a smoother transfer of data between memory and the swap file. Since this only uses 32 kilobytes of memory, it's probably worth a try. View Online Help