>Take any classic FPS - going from 60 to 125 FPS won't make >any change (some might claim)
*claim*
Well, yea there is a difference, but you need 1. vsync 2. a mouse with a high polling rate (usb or ps2@100|200hz) and 3. the game physics should be written rather well.
However, for a 2d game 60hz are usually enough (because you don't have such extreme screen content changes like you have in a first person shooter).
Btw the "eye pixels" asynchronously refresh at crappy 7hz (it's like spraying new images over the "buffer" without clearing it
ever). That's the reason for persistence of vision.
Having said all that... Q3 looks less smooth with vsynced 100fps@100hz than cpma (a Q3 mod) with vsynched 75fps@75hz, because they removed a silly bug there (snapping the players position to units each frame...

). So it's really worth spending some minutes thinking about how to get the movement as continuous as possible. It will look better than something jerky at high fps.
> going from 250 FPS to 500 certainly won't!
True. If you can't sync that high it's a waste of cpu/gpu cycles. You won't get anything (except bleeding eyes) from crippled frames (eg one frame containing the stuff of 2-3 frames [=tearing]).
Well, with Q3 you get "connection interrupted" with 500fps+ and all quake engine games lockup/crash if you ever reach >=1000 fps
