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Should I buy a table saw or a radial arm saw?
The table saws work best for ripping. A radial arm saws work best for crosscutting, but its limited by the length of the arm that holds the saw assemby. That said, both saws will perform both tasks although ripping on a radial arm saw can be dangerous as crosscutting long pieces of stock on a table saw.
Both saws are capable of accurate cuts and depend largely on the quality of the machine and how "accurate" you are in the intial set-up. The radial arm saw is more difficult to assemble and set-up because of its cantilevered and articulating column and arm configuration.
You can use a radial arm saw for non-sawing tasks like surface planing, routing, and drum sanding. A table saw is limited in this way because the saw itself is located under the table and only has an workable area the size of the opening through the table.
Space is an issue with a table saw. You always need you need space in front and in back of the saw for ripping operations and the left and right when crosscutting. The radial arm saw sits with its back to the wall, left and right space is driven by the lenghth of the lumber and the table on the saw generally limits the projection into the shop space.
You can do some amazing things with a table saw and I think it's should be at the center of any workshop. The tasks that you would use a radial arm saw for can be done with other tools using jigs, fixtures and a little creativity. If it's my choice, I'd buy the table saw. (then save my money for the radial arm saw).
The old contractror "chop saw" has evolved into a portable radial arm saw of sorts and is a less expensive alternative, not to mention a whole lot easier to set-up.
Recommended reading: The Small Wood Shop (Best of Fine Woodworking)

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