Whether it is MUCH faster actually very much depends on the software you run. IMHO, Dual Core is a BIG HYPE, not much more for a single stand alone desktop PC. For gaming, the game itself should ideally be programmed for multiple threads. I can tell you that most games are not! The current Doom/Quake/Unreal/HL engines are not designed for dual core machines (they are not multi-threading engines, I know because I have studied them). HOWEVER, in the not so distant future, the games that come out shortly will start taking more advantage of dual core machines! Actually it's fairly easy (for a multi-million dollar company) to make the engine use multi-threads, the main obstacles are thread synconization.
Anyway, point is, my suggestion. For gaming right now ... single core with high clock rate (and as much L1 cache as possible, then L2 cache).
For gaming in the not so distant future, multi-core/multi-threading games will kick ASS if they are run on a dual core machine.
A multi-threading game running on a single core WILL BE slower, because thread syncronization is the main overhead. That is why most game engines are not multi-threading, because most PC's don't have dual cores. The overhead to support multi-threading in a game engine is the detterant, also, if it's not properly synconized, debugging is also more labour intensive!
Anyway, bottom line is, at the moment I don't know of ANY MAJOR FPS game engine that is multi-threading! Because most gamers still have single cores.
BUT, single core's days are numbered!
Intel have been planning multi-core roadmap since Pentium 1 came out with 2 pipelines, the U and V pipe. Each new Pentium enhanced the functionality of the second processing pipeline until Pentium HT, where both pipes have evolved into 2 "vitual" cores, both "virtual" cores can do exactly the same functions as the other now!
Anyway, the other consideration is drivers. If your graphics card or any other driver for that matter are multi-threading, they can take full advantage of Dual Core. Also, if you for example do a lot of compression/conversion at the same time, you can take advantage of both cores by starting another instance.
Hope you got some idea!