Hi
gigabytes website it says it can take AM3 socket cpu, how is this possible when its an AM2 socket.
in answer to this question, it is possible because AMD designed the CPU to be backwards compatible. The AM3 CPU's can fit into AM2/AM2+ boards but (there's always a but) if you put an AM3 into one of the older boards you do not always get the full power of the processor, Hence the reason that the Hyper transport will downgrade to 2000 from 4000. Also with the older boards they usually need a BIOS update to allow for newer processors and not all boards get this update.
is it possible for it to take a quad core
Yes, your board will take a Quad core, but you are a little limited to your choice. Before buying a new processor check out the Supported CPU list for your Mobo. Remember to check which revision number your Mobo is as there are 3 versions. Also remember to make sure that your BIOS is up-to-date or you may have problems if it isn't.
Here are the links for you:
Rev 1.0
http://www.giga-byte.co.uk/Support/Motherboard/CPUSupport_Model.aspx?ProductID=2287Rev 1.1
http://www.giga-byte.co.uk/Support/Motherboard/CPUSupport_Model.aspx?ProductID=2383Rev 2.0
http://www.giga-byte.co.uk/Support/Motherboard/CPUSupport_Model.aspx?ProductID=2539will i notice an increase in performance compared to my processor now?
Yes, you will notice an improvement in performance.
Hope this helps