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Why should I use List<T> and not ArrayList

I came upon a questing at StackOverflow : The system I work on here was written before .net 2.0 and didn't have the benefit of generics. It was eventually updated to 2.0, but none of the code was refactored due to time constraints. There are a number of places where the code uses ArraysLists etc. that store things as objects. From performance perspective, how important change the code to using generics? I know from a perfomance perspective, boxing and unboxing etc., it is inefficient, but how...