MSDN has some articles that would probably help clarify some things: Scheduling Priorities and Multiple Processors.
Excerpt (Scheduling Priorities):
Threads are scheduled to run based on
their scheduling priority. Each thread
is assigned a scheduling priority. The
priority levels range from zero
(lowest priority) to 31 (highest
priority). Only the zero-page thread
can have a priority of zero. (The
zero-page thread is a system thread
responsible for zeroing any free pages
when there are no other threads that
need to run.)
The system treats all threads with the
same priority as equal. The system
assigns time slices in a round-robin
fashion to all threads with the
highest priority. If none of these
threads are ready to run, the system
assigns time slices in a round-robin
fashion to all threads with the next
highest priority. If a higher-priority
thread becomes available to run, the
system ceases to execute the
lower-priority thread (without
allowing it to finish using its time
slice), and assigns a full time slice
to the higher-priority thread.
And in regards to Multiple Processors:
Computers with multiple processors are typically designed for one of two architectures: non-uniform memory access (NUMA) or symmetric multiprocessing (SMP).
In a NUMA computer, each processor is closer to some parts of memory than others, making memory access faster for some parts of memory than other parts. Under the NUMA model, the system attempts to schedule threads on processors that are close to the memory being used. For more information about NUMA, see NUMA Support.
In an SMP computer, two or more identical processors or cores connect to a single shared main memory. Under the SMP model, any thread can be assigned to any processor. Therefore, scheduling threads on an SMP computer is similar to scheduling threads on a computer with a single processor. However, the scheduler has a pool of processors, so that it can schedule threads to run concurrently. Scheduling is still determined by thread priority, but it can be influenced by setting thread affinity and thread ideal processor, as discussed in this topic.