I have finally proven that I am GPU bound with my previous thread analysis. It appears that no matter how I am balancing my threads I'm getting the same frame rate. So it doesn't matter if my renderer is using 80% of the CPU or only 60% of the CPU it's still getting the same FPS. The only thing that really affects my frame rate is switching from windowed to full screen.
Now since the geometry I'm attempting to draw is so minimal I guess I am currently bound by the fill rate of my card? I guess it makes sense. If you have simple graphics and simple processing behind it you shouldn't be limited by CPU.
So what does this all mean? Is this a good thing or a bad thing? For me it's both.
The good thing is that my game should really be able to run on any old machines as long as it has a graphics card that can handle DX 8. Since I am making a casual game I want to be able to target old computers that can run unspeakable things like Windows ME or 98.
The bad thing is that my game probably won't see much benefit from running on a top of the line dual core machine as opposed to a single core. This means the already slim chance of making it into the finals of the Intel contest just got vastly slimmer.
Oh well. Better to have a bigger target market anyways.