Setting up a Xeon server PC

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i have a intel xeon quad core processor, and i have built a system for it, the system works fine , boots windows regularly, but when i run cpu intensive programs such as video editing (Vegas 8.0) or photoshop it will start to lag other programs like the internet, and even windows itself, i have never set up windows for a quad core cpu, is there any special tweaking that needs to be done so it can run more efficiently? Better multitasking.

sys specs
intel xeon 3300 2.66ghz per core x4
4gb of ddr2 ram
512mb 8800 gt
currently installed is windows xp 64bit.

what do you guys recommend? im sure these programs cant really be maxing out on the power of this cpu?

i have never really built any systems with quad cores or even dual cores so i am unsure of the steps nessesary to make the cpu compatible with it, tweak it.

thanks in advance, Fang_x
 
XP 64 bit is picky with it's compatible software and drivers. What motherboard are you using?
 
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