When you have a 3.2 ghz quad core does that mean that each processor is 800 mhz?

No. Each processor core is 3.2gHz. The bottleneck is the bus interface, but the compromise is that each core tends to spend more time executing instructions than accessing memory. Even so, L1 and L2 cache improves the situation by caching memory, so you get the best of both worlds. If, however, all the cores randomly accessed wide areas of memory, performance would suffer.