Dual core processors are simple, you have two cores! It's like multi-processing of old, except now it comes on a single processor chip.
Basically, to extend your example, you have 2 processor cores, each running at 1.66ghz. Each application you run generates a 'thread', which runs on one of the cores. Thus, if you run multiple programs at one time, it will split processing them between cores. In theory, it means you have almost double the power of a single core processor. In practice, if you're running a single application and you want it to take advantage of both cores, it must be multi-threaded for it to use both cores at once. For multitasking and for regular computer usage dual core processors are absolutely wonderful.
In short, it's a good thing to have the multiple cores, but for some specific apps it's still more powerful to have a single, higher speed core (as the application can't take full advantage of multiple cores). However! I am unsure how this impacts gaming today or offer you any suggestions on what to buy, I haven't done pc gaming in many years
Hope that makes some sort of sense!