A video card only has 1 RAMDAC, unless it has support for multi-display configurations using discrete RAMDACs(such as the Matrox G450). I believe you are referring to the RAMDAC speed, in which case the higher the speed, the higher the refresh rate a video card can support at any particular resolution. This is especially important at high resolutions(1600x1200 or more) since more bandwidth is required. A faster RAMDAC isn't indicative of better image quality, it only allows higher refresh rates. However, higher refresh rates may lead to reduced eye stress, which may be perceived as "better image quality", even though the displayed image may be the same, just refreshed more frequent. Also, video cards with good image quality tend to have faster RAMDACs too.
To correct Czar, RAMDAC speed is pretty much independent of resolution support. Resolution support is strictly only a factor of memory size. They are correlated, in that you don't want to display a 1600x1200 screen at 20Hz, but not directly dependent, in that you can do so if you wish to(or rather, if the video card manufacturer so desires).