Can I verify my SQL Server is using all 4 CPU's? Same with the Operating System?

We have an SQL Server (Standard) that I thought could only use 2 CPU's but if I go into my SQL manager it lists all of my CPU's (0-7) so I'm assuming it's using all 4.  We have some performance issues so we are considering upgrading to 2005 but want to know if I'm using all 4 processors or not with SQL?  

Is there a performance monitor that will monitor individual CPU's?  That way I could also see if only 2 of the CPU's were getting maxed out, thus I could conclude it's only using 2 or all 4.

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"Is there a performance monitor that will monitor individual CPU's?"

Yes: Process Explorer:

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