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I might be getting a processor I found on newegg.com for $130. Its an AMD Athlon X2 4000+ dual core. I have heard I'd need to get xp pro though and is that true? Does xp home support dual core?

XP Home will support up to one physical processor(1-2 cores). XP Pro will support up to two physical processors (1-4 cores)

You can read the difference beetween XP Home Ed and Professional Here
http://www.winsupersite.com/showcase/win...me_pro.asp

Enjoy!

So home edition supports dual core or do I need to upgrade to professionbal edition? Dual core would really help me out considering the stuff I'd like to do with my computer.

well, yea it support dual core.. ;)

No - Get a Mac. :) [No I am not an Apple Fanboy.]