If you went AMD, I'd have to suggest a Mobile Barton (relatively inexpensive) or an A64 (not cheap). ALL things considered, AMD and Intel are basically equal right now. A64's are performing better than P4's at stock speed, but the latest P4's are overclocking like crazy on air cooling and thus able to exceed...
It's a back and forth match that basically comes down to your own preference. I still firmly believe that, unless Intel pulls a rabbit out of their posterior orifice, I'll likely be an A64 customer for my next major upgrade in a year or so. But that's just my personal preference; I happen to think AMD is onto something. Others will disagree (and rightly so.)
If you go Intel, I'd suggest a 3.0C with a decent overclock. There were some killer overclocking 2.4C's out there, but they all require some SERIOUS front side bus speed. Even the best-of-the-best motherboards often have intermittent issues getting to those kinds of FSB. I went through four identical motherboards, and basically ALL of them stopped at between 284 and 288FSB. I voltmodded one of them and got it stable to about 296...
My 3.0C needs "only" a 250FSB and some good ram; most motherboards out there today can easily attain this speed. I find the 3.0C gives you a great combination of good FSB (1000mhz), good memory speed options (500 in 1:1, 400 in 5:4, or even 333 in 3:2) and LOTS of processor speed (3.75ghz, woohoo!)
You can get a 3.0C for around $200 USD, and a good motherboard for $130 or less. Buy some decent ram (you decide: PC3200 at 5:4 tight timings, or PC4000 at 1:1 high speed) and a good video card and you're done.