I have both worlds. AMD is very sluggish when running more than one app but kicks butt at games.
The P4 3.4c is lightning fast when it comes to running mulitple things. I leave folding running, and can switch between apps in an instant. Plus it can play D3/HL2 at a good frame rate.
Since heat is an issue with the newer Prescott chips, I'd suggest you go old school and build a similar system to what I have. A P4 3.4c (northwood) with an Abit IC7 Max3 Motherboard.
Only thing is, Newegg isn't carrying the 3.4c anymore, they're down to the 3.0c, so you'd have to look elsewhere for it.
You know, the equipment to make my system is almost 2 years old since it was announced, yet in a recent SuperPi contest over on the H, my system stayed in the top 10 for a few weeks.