Well, it will make quite a bit of difference especially under Windows 7 as that was written to take advantage of multiple processors/cores. Additionally, there are many programs out now that can also take advantage of dual-core processors. Take dBpowerAMP or foobar2000 as an example, they can encode two audio files at once without encountering a hiccup. Many video encoding/editing applications also perform much better with dual-core processors.
Look at the computer industry as a whole: dual-core processors have become the norm whether we are talking about the bland Pentium line, Core labeled processors, the AMD line, etc. The single-core line of computers are the ones that stick out as they are no longer the standard.
Also don't forget that the S1125 comes with a 320GB hard drive while the S1120 has a 250GB hard drive. So you are basically paying more for double the processors and 70GB more of storage.
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