While scanning for some information I landed on the following Redhat Knowledgebase article: http://kbase.redhat.com/faq/FAQ_85_7936.shtm
Apparently there is nothing wrong and it talks about the largesmp kernel and supported CPUs etc. All is fine till you look at supported number of CPUs table and esp. the “Certified” column. 64-way x86 SMP and 256-way Itanium SMP, cough cough cough. To the best of my knowledge Nehalem “is going to” bring 16-core and 32-core SMP on x86 next year and HP’s SuperDome 9000 is probably the largest Itanium system which is 128-core.
Looks like someone has super duper systems on the Moon that are yet to come down to Earth! Apologies if I am wrong though!