Bryan
If you're going to spend money on a CPU, go quad, dual core is dead. Games are starting to take advantage of quad cores now!
If you want to go budget, go AMD. For what you can afford, say $500, you can get an AMD CPU, motherboard, power supply, and a video card. Right now an ASUS board that will use your existing RAM will set you back $80, an AMD 3.4 quad core $180, video card $160, and a 650 watt PSU $80.
The Intel E8400 3.0mhz dual core is only $10 cheaper than the AMD 3.4mhz quad core right now.
I don't regret jumping ship on Intel at the moment. There's apoint in time when you need to put your money where you get the most for it. I think Intel is way too pricey for what you get right now.
Hey at $500 for your desktop, that leaves you $900 for a laptop.
It really doesn't make alot of sense to spend what Intel is asking for their CPU's since no matter what you buy, it will be out of date two years from now. I know the motherboard I bought will also run the AMD 6 core CPU's also. So, maybe in a year or so, I'll drop a 6 core in it!