I thought I'd report back on this after getting the new CPU/PC.
The Dell T5500 works very well. I had to put 7 Pro on it since my old XP Pro CD did not support SATA drives.. it was easier to locate a 7Pro ISO and burn my own CD.
I ran a FL Studio project that used a ton of samples/tracks that made my P4 fall on it's face. Not a problem for the new PC.
I dont think I ever saw the CPU bar go past 50%.
So this may be well enough power to get me started and I'll add in the 2nd CPU later on.
Thanks again so much for helping me figure out a decent PC.. I surely would have bought the wrong one without your advice.
Oh and add Kontakt 5 in the list of Multicore supportive software "synth".
I noticed after I got it going on the new PC that it autconfig'd to 4 cores.