That E7500 is a fantastic CPU for general work - it runs very cool (always under 60C at default voltage even with stock cooler) and will be quite a lot faster than your P4 at everything.
It will also be a huge amount more energy efficient even though its dual core. It's rated at 65W, same as all 45nm core2's, but in real life it uses much much less, amongst the lowest power users in the core2 series. I'd say half of the P4, yet be much faster. Just take a look at how low power the E7200 is:
http://www.tomshardware.com/reviews/intel-e7200-g31,2039-4.html
And that's total system power, not just CPU!
The E7*** series are not cut down E8*** series with half the cache disabled like some people think - they are actually a stand alone core with less transistors and smaller physical dimensions for the die. Quite a lot smaller too - the main transistor count in a CPU comes from the cache.
As a result, they are very power efficient, clocking themselves down much better than a P4 when doing little or less work. Plus they do overclock like crazy, massively helped by the 1066 bus - how well and at what voltage depends more on the motherboard. The CPU itself will do 3.6Ghz comfortably and you can keep speedstep enabled.
There are actually two versions of the E7500 - one with virtualization, and one without:
http://ark.intel.com/Product.aspx?id=36503#ordering
You may be lucky and get a little extra.