My dual-core Pentium IV (3.06GHz) is running the game beautifully. It's not a huge improvement over my previous single-core Athlon, to be honest, but I think there is a certain performance ceiling for the game that I have already hit. Likewise, I have not observed that much difference between 1 and 2GB of RAM.
Does it work with Dual-core processors well? You bet.
Is it worth getting a Dual-core processor? Yes, I think so. But not for SHIII. You won't see much change from a decent non-dual-core machine.
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There are only forty people in the world and five of them are hamburgers.
-Don Van Vliet (aka Captain Beefheart)
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