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Dell Dimension E520 CPU Upgrade Problem

I attempted to upgrade the cpu from a 3.0Ghz Pentium D (LGA775) to a Core 2 Duo (LGA775), after I install the chip (used thermal grease,everything seated properly etc... I can't get the machine to boot at all, the power/fans come on but the machine sits idle.

I removed the new chip and put the old chip back in place and it works fine, tried this a couple times, also upgraded the bios.

What would generally be the issue here?  I want to point at a faulty chip but it seems unlikely since it's brand new/retail.

Any suggestions?

This is the new cpu I purchased:
Intel Core 2 Duo E7400 Wolfdale 2.8GHz 3MB L2 Cache LGA 775 65W Dual-Core Processor - Retail
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This information was very helpful, I read nowhere on the dell website about the 45nm vs 65nm architecture.  I am planning to purchase a quad core 65nm at this point to see if it works out.  I of course did already upgrade to the most current bios before I tried to install the new chip.

Thanks!