You have 4 cores which are like separate CPUs. Each of those cores are "hyper-threading" meaning that each core also has a "fake core," making Windows see a total of 8 processors.
The term threads mean different things. For years, Windows cut up the tasks into threads for multi-tasking purposes. Hey, that is the only way to get one core to do many different things, and that is to time-share the processor. Then by the Pentium 4, they came of with the idea of getting the CPU to do some of the multi-tasking. All the resources of the CPU are not in use at any given time, so why not add extra CPU registers and pass the CPU off as two? In the Pentium 4, it wasn't as good as expected since there was a bit too much competition for the cache. While AMD was adding more and more true cores, Intel was adding more hyperthreading cores.
Another use of the term thread is for independent parts of a program. On a single-core, non-hyperthreading processor, all those parts run in the same core. But if it is hyperthreading and/or multi-core, then those parts each get their own core (whether a physical core or a hyperthreading core). Winrar, for instance, cuts up the compression into multiple threads so a multi-core CPU can run them all at the same time.
Oh, and processing speed and RAM size has nothing to do with this. Each core/thread is running at the full 2.2 GHz. For years, CPUs were measured in a "guy" sort of way, and performance meant clocking the CPU faster or making the instructions run in less clock cycles. Multi-core then adds in the "girl" way of improving performance, and that is getting more "friends" to help. That doesn't make it faster, but if the programmers cut up the work into tasks, then more cores gets more work done.
RAM speed is separate from this too. Some PCs will perform better if you have at least 2 or at least 4 sticks of RAM. They use multi-banking to allow the memory to be accessed faster by interleaving the accesses across multiple banks. But CPU speed, memory speed, and front side bus speed are separate.