1.- Linux and other systems will benefit too, if they support multiple CPUs (Windows 9x won't be able to use both CPUs, I think).
2.- Yes, but don't expect a big impact on performance. If the program is using only a thread, you may expect one CPU using that thread and the other executing other programs (a little improvement), but if the program was designed to support multiple threads the improvement would be big (both CPUs executing pieces of the game at the same time).
3.- As stated before, all games will work... a few games will show big improvements.
4.- Not exactly... both CPUs share RAM and I/O devices, so the computer won't work as a 200% P3... it will be more like a 150~175% P3. That is, provided that you could put both CPUs at 100% work with threads from different applications (if you're executing a monothreaded app, it only get as much as a 110% P3 because the other core will only be executing OS threads).
I have traveled across the universe and through the years to find Her.
Sometimes going all the way is just a start...
I'm selling some stuff!