Temporary Variables vs Temporary Tables SQL Server 2008/2005
Myth: A table variable is a memory-only structure.
This is not True. A Temp table variable might hold more data than can fit in memory, it has to have a place on disk to store data. Table variables are created in the tempdb database similar to temporary tables.
Note: If memory is available, both table variables and temporary tables are created and processed while in memory (data cache).
Normally whether to go with Temp Variables or Temp Tables depends on:
•The number of rows that are inserted to the table.
•The number of recompilations the query is saved from.
•The type of queries and their dependency on indexes and statistics for performance.
Some other important … Read the rest