First of all, a Celeron 566 IS an "up-to-date processor." It is being manufactured as we speak.
Why are they so cheap then?
The Celeron is a processor with a Pentium II core, but it's crippled to run on a 66Mhz bus (as opposed to 100Mhz) and only has 128K cache (as opposed to 256K). Intel produces this chip to compete in the budget PC market.
The good news?
Intel is very good at making the PII core. This fact has made the Celeron one of the most easily overclockable chips on the market. How do you overclock a Celeron? You bump the bus speed. Most Celerons will run on bus speeds between 83 and 100Mhz, greatly increasing their clock speeds and closing the gap between themselves and the PII (remember one of the key differences between a Celeron and PII is the bus speed).
Just so you know: CPU speed = fixed multiplier * bus speed. So, a 400Mhz Celeron has a fixed multiplier of 6, because it is designed to run on a 66Mhz bus. What happens when you crank the bus speed to 100Mhz? You have a 600Mhz CPU running on a 100Mhz bus. Aside from the cache, you have a 600Mhz PII
Of course overclocking results may vary. I have my 400Mhz at 500Mhz via an 83Mhz FSB.
What if you're not into overclocking?
The Celeron is still a great performer for the price. It will perform, with many applications, similarly to early PIII processors (non-coppermine), which were just PII processors at higher clock speeds.
What about the small cache?
Cache is not too important to realtime multimedia applications. The CPU's design (esp. FPU) and clock speeds are a bit more important. You will see the impact of the smaller cache in business (desktop) grade applications.
What else should you know?
If you buy right, you can upgrade from your Celeron to a faster PIII if you buy a good motherboard. I still kinda recommend a SLOT1 motherboard, even though it requires a riser for both the newer FCPGA PIII's and PPGA Celerons. The "risers" or "adapters" are only 10 bucks.
The point is that staying a year or two behind the fastest shit on the market will save you big bucks, and still offer up great performance. Unlike the early 90's, hardware is advancing much more quickly than software....
Except when it comes to audio processing. The CPU is most important when it comes to using realtime effects and currently the best effects are such hogs that it doesn't matter if you have a Celeron or a PIII, they're going to suck your machine dry after just a few instances...and they'll still sound "worse" than standalone boxes. However, many of us are satisfied with "lesser" plugins that still sound great. With a 500Mhz Celeron CPU, expect it to handle say 20-30 instances of "typical" DX effects (blueline, fasoft, average VST) on 10-20 16/44 tracks without choking. (fewer effects will allow you to work with more tracks, yes) Those are my results with my oc'ed 500Mhz Celeron, 160MB, 7200RPM hard drive, and Win2000 anyway.
I realize I've been rambling. There are other important things to consider in your new PC. Follow the advice offered in Roll Your Own 2000. But for the love of pete, don't use Windows 98 or Windows 95.
Slackmaster 2000