Ok I am planning to upgrade to a AMD 64 3200+ 1600Mhz FSB in a few months, I need a cpu that will allow me to run any 3D game,edit movies,Do office work,and do some minor to moderate photo editing and graphics editing,finally some animation.

Will this cpu allow me to do all these things with smoothly?
I am mostly concerned with the 3D game and that they will run perfectly. I was reading on the AMD site that Amd's have 3D Now!,what does that do?

And currently im running a 2.2Ghz Celeron 400MHzFSB will the upgrade to a AMD 64 show an extreme difference or just a minor difference?

3D Now! is an extra set of instructions inside the processor to help with 3D operations. Does it really help? Well, you won't notice a difference by having 3D Now!. However, another thing like 3D Now!, called SSE2, is inside of the Athlon64 processors - and that will help you.

Although the big bump in speed wil help your performance, your better off investing in RAM. To do all those tasks, I reccomend buying at least 1GB of RAM. Since RAM prices have gone down so much, 1GB is quite affordable.

Another thing that will greatly help your video performace is your video card. Consider a card like the Ati Radeon 9800 - thats the top of the mountain when it comes to video cards.

err... Im getting dual 256Mb x2 (512Mb) DDR PC 3200 for that pc

But wont the combination of a AMD 64, 9600XT,and 1Gb of Ram be enough to run games smoothly?
Because I just bought a 9600Xt less than 2 weeks ago and I really dont want to spend $300 on a new video card just yet.

And Amd 64 works on 64-bit, well some one told me that Windows Xp only operates at 32-bit.
If thats true is there a 64-bit Windows XP version out yet?

as for you question about windows xp being 32 bit it is and the amd athlon 64 will run both 32 and 64 bit microsoft is making a windows 64bit system but i don't know when they are coming out with it but i know that they are working on making a 64 bit system