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Layer 2 or Layer 3 Switch

Should I pick a layer 2 switch or a layer 3 switch. There are also layer 4 and layer 7 switches.
Lets get back to layer 2 or layer3.
Layer 2 only provides routing based on layer 2 information(ie VLAN) where as layer 3 switches will route based on information such as IP addresses.

What are your requirements for a switch?
29x series switches are generally layer 2 only with limited VLAN support

2960G-24TCL is layer 2 - Feattures = Auto-sensing per device, DHCP support, auto-negotiation, VLAN support, IGMP snooping

More.....

L3 switches are fast routers. In Cisco's case, the same IOS runs both on routers and on switches. One of the primary differences is that only a more traditional router can "route" traffic between disparate physical-layer connectivity, i.e. between Token Ring and Ethernet, between WAN (T3, T1, ISDN, etc) and LAN.
Because the L3 switches need to be fast, many of the advanced features of a router are left out, ie. IPX and Appletalk routing, advanced routing protocols like OSPF, IS-IS, and sometimes Quality of Service as well as access-control features.
http://www.cisco.com/web/about/ac123/ac147/archived_issues/ipj_1-2/switch_evolution.html

sew