Lately I've been running a 2.66 ghz E2180 and I play a lot of HL2. Factory OCd 8800GT 512, 4 G of ram and a CRT. 1600x1200@120hz, all settings max and 4xfsaa.
I have *NEVER* bogged to 30 fps. Ever. And I'm in pyro rushes as either the pyro or the medic quite often. Lots of people on fire, lots of particle effects. I have yet to see non-smooth gameplay.
Either there's something strange about the video settings those people use, they run at > 1600x1200 res, vsync is on using an LCD, audio drivers are having heartburn or *something* -- there is some other cause of their low performance. A 3.33 ghz E4400 should not be 25% slower than an E8400 unless they've cranked it to well over 4 ghz and the game is completely and utterly CPU bound! Which means no current retail CPU made is capable of handling that game, never mind CPUs made in the past 2-3 years. I just have a hard time seeing it. This isn't Crysis we're talking about here. Slower CPUs are often times paired with value motherboards, cooling solutions, PSUs, sound, etc etc. I'm not surprised the lower you go costwise the slower life gets.
Tf2 'ideal' recommended system is a 3.4 ghz P4 with a 6800 graphics card. You've got four times the ideal hardware (2x cpus, 2x IPC, equivalent clock) firepower and over eight times the minimum. There's some other factor here slowing you down.
And the quoted numbers probably come out of the hl2 lost coast demo benchmark. 140 fps is what higher end setups seem to get average, with mid 200s during the last part of the demo.
You know what, I've got a couple of friends at Valve. If I remember I'll see if they can dig around for an idea of why a system like yours would bog down to such low FPS in a firefight. Clearly just throwing obscene amounts of hardware at the problem isn't working for many people.
Edit: OP, if you're *not* overclocking an E8400 will be a night and day difference. If your E2xxx is OCd to 3 ghz or higher the difference will be much smaller.