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I'm aware that SQL Server Express 2008 is having few limitations on the database size and the CPU utilization. In MSDN documentation it was mentioned on the express edition would use only one CPU.
I went through the following links but I'm not clear about this:
here and here

I have a quad core processor server. If I install SQL Server 2008 express on this server will SQL Server 2008 express uses all four cores or a single core?

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It will use all of the 4 cores:

To determine the CPU count for licensing, SQL Server 2005 Express Edition only counts the physical processor chips in the computer. For example, SQL Server 2005 Express Edition counts a single-core CPU, a dual-core CPU, or an HT Technology-enabled CPU as one CPU.

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