We use hydrodynamical simulations to assess the impact of radiative cooling
and "preheating" on predictions for the Sunyaev-Zeldovich (SZ) effect. Coo
ling significantly reduces both the mean SZ signal and its angular power sp
ectrum, while preheating can increase the mean distortion while leaving the
angular power spectrum below that found in a simulation without heating or
cooling. We study the relative contribution from high- and low-density gas
, and we find that in the cooling model about 60% of the mean thermal disto
rtion arises from low-overdensity gas. We find that halos dominate the ther
mal SZ power spectrum in all models, while in the cooling simulation the ki
netic SZ power spectrum originates predominantly in lower overdensity gas.