NF7 processor trouble

I just bought an NF7 v2.0, to go with my XP 2500 Mobile. However, in the bios it shows as an "Unknown Processor" and it sets the multiplier and fsb at the lowest settings. Is this normal, or would a bios update fix the problem?

It is normal and the problem can be fixed. It is normal because Abit has not added Mobile XP data to the BIOS so it can't figure out what processor you have. Some of the newer modified BIOSs will display "Mobile Athlon XP" but I couldn't tell you which ones. I'm not aware of any BIOS that will set the Mobile's stock clock speed, so you will just have to manually set those values.