Double Data Rate 2 (DDR2) replaced Double Data Rate (DDR) SDRAM in much the same way that DDR has replaced SDR memory.
DDR2 advantages over DDR:
(1) Lower voltage requirement (in most cases, unless overclocking). DDR requires 2.5 volts while DDR2 only requires 1.8 volts. This gives an edge especially in mobile computing where battery life is important, and allows the chipset to run cooler at high frequency.
(2) Double bandwidth. Instead of two bits transferred through the bus at a time, DDR2 has four bits transferred. Like DDR, this transfer occurs twice each bus clock cycle (compare to SDR once per cycle).
(3) Higher data rate. DDR chips are produced from 200 up to 400 Mhz, while DDR2 chips are produced from 400 Mhz up to 800 Mhz and beyond
DDR2 disadvatages compared to DDR:
(1) Higher latency. Because more data is transferred per cycle, the read latency is increased. There is a larger buffer from the bus to the storage, so more data must be processed before it can be accessed. This eventually is overcome by clock speed in the chip. The break even point is considered to be at DDR2-533 speed. At that point and beyond, DDR2 outperforms DDR because of higher bandwidth.
(2) Higher cost.
(3) Not backwards compatible. Older motherboards that were produced for DDR will not be able to use DDR2 SDRAM.
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