These drives have been talked about quite a bit on the forums... you can do a search.
As far as the 8MB cache, it allows more data from the drive to be stored in the faster cache meaning it has to go to the slower drive platters less often.
The only difference in the 3 (besides capacity) is the density and number of platters.
The 80GB has 2 - 40GB platters
The 120GB has 3 - 40GB platters
These two drives are the same performance.
The 100GB drive has been debated. Some say this drive has 3 40GB platters but they only use 1 side of one of them... giving the 100GB. Others say it has 3 -33GB platters ... smaller platters will give slightly less speed. Some people say that they used to be 33GB platters and now are being made with 40GB platters. I think the only way to know for sure would be to email WD on it. Based on their website the 100GB has 6 heads or enough heads for front and back of 3 platters. Based on that info, I lean towards the 33GB platters.
The good news is that the price difference roughly breaks down to this...
80GB - $130
100GB - $180
120GB - $200
So, if you are thinking about the 100GB, the 120 is only $20 more.. easy choice.
I have the 80.