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I'm looking at the core speed. I noticed that if I open files or do other things, it jumps up to 2.4GHz then back down to 1.6GHz. Is that normal? Sorry if this is a dumb question, but I'm not really sure about what it's reporting. I have all default settings in the bios except for the memory which I lowered to 800MHz to improve system stability.
That's Intel "SpeedStep" and it's normal. All modern CPUs (even by AMD Athlon64 in my old rig, except AMD has their own name for it) do this now. The CPU throttles down to a lower speed when it's idling to save power and run cooler. If your mobo has a smart fan controller, the fans will also run quieter.
No down side as far as I know. As soon as you demand more that a few percent of your CPU power, it throttles right up. The Q6600 in my Dell does the same thing.
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FAQ
Q: CPU-Z reports my CPU speed below its stock frequency.
A: This is the effect of the CPU power reduction mechanism : C1E (Enhanced Halt State) and/or EIST (Enhanced Intel SpeedStep Technology) for Intel CPUs, Cool'n'Quiet and or PowerNow! for AMD CPUs. Load your system and you will see the frequency increase to its nominal value.
Yeah, it will say mine is running at 2Ghz for example, it kicks it up to 3ghz when needed. It is an overall good thing actually. You use less power, which means you produce less heat in which case your fans don't need to run as fast so you save even more power...