I know it's noob question...
I'm thinking about getting AMD Athlon 64 3200+, 512k L2 Cache, The Only 64-bit Windows Compatible Processor - Retail. One thing I'm unsure about is "only 64-bit Windows compartible???" What does that mean???
I have XP home edition... will it work with my OS?
I'm guessing you found the CPU on pricewatch, as all the listings say that. Anyways don't worry about it, it will work with your copy of Windows XP just fine. I'm actually using a 64-bit system right now, with XP. It just means that the processor is compaitable with the 64-bit version of Windows, but is also compatiable with 32-bit versions as well.
Yes, it will work very well with xp. You can also download a free (for 1 year) beta version of Win64. If you like to play. Just remember it's a beta, so it isn't fully supported.
When Windows 64 does become available, you should see performance gains in many progs.