Taken from: http://tech.yahoo.com/blogs/null/8263
Core Duo is Intel's first dual-core CPU. Dual core means there are 2 cores on a single die or simply put, two chips in one package. Core Duo conserves substantial power and good performance.
Core 2 Duo is the 2nd dual-core CPU. Chips are built uisng the same prodution process and fit in the same sockets as Core Duo chips.
Same frontside bus speed (667MHz) but Core2 Duo has faster clock speed (2.67GHz). Same L2 cache however Core2 Duo architecture have more sophisticated processing abilities. Core2 Duos outperform Core Duo computers on tasks across the board by about 30%. Core is gone from the market so pricing for Core2 Duo is about the same as Core nowadays.
Latest technology is Core 2 Extreme XQ6700 which is a four-core processor.
Note: Core 2 Extreme XQ6800 is still a dual-core processor but just a fancier version of Core 2 Duo.
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