I would also have to say that it is a software problem.
Let's put it this way - the Core 2 Duo is a 64-bit dual core processor. Your processor is a 64-bit dual core processor. Sounds to me like someone isn't getting much better than what's already there. Also, 2gb of ram with that same chip should mean that your computer is bored enough to learn fucking Swahili. I'm going to guess... some part of your software. I'm running a single core, 32-bit 3.06gHz with one gigabyte of RAM and using a popular DAW whose name rhymes with Tubase, and I can pull off one instance of EQ and one instance of C4 on sixteen tracks (at 24/96) with no glitches, and on top of that switch to Winamp and play something entirely different when I get annoyed and need a break.
That said, if you'd like to sell this one...
Jeff