We have the following CPU that supports hyper-threading. Though Ubuntu doesn't recognize that each core supports 4 threads.

Intel® Xeon® Processor E5-2407
http://ark.intel.com/products/64614/

The server is a Dell PowerEdge R320
http://www.dell.com/support/Manuals/us/en/19/product/poweredge-r320

The results of lscpu is
lscpu

Architecture:          x86_64

CPU op-mode(s):        32-bit, 64-bit

CPU(s):                2

Thread(s) per core:    1

Core(s) per socket:    2

CPU socket(s):         1

NUMA node(s):          1

Vendor ID:             GenuineIntel

CPU family:            6

Model:                 23

Stepping:              10

CPU MHz:               800.000

Virtualization:        VT-x

L1d cache:             32K

L1i cache:             32K

L2 cache:              6144K

I've gone thru and checked the BIOS and I enabled all the features related to virtualization and logical CPUs.

Any ideas?

cpufreq is not being run as asked below

sudo cpufreq-info
cpufrequtils 007: cpufreq-info (C) Dominik Brodowski 2004-2009
Report errors and bugs to [email protected], please.
analyzing CPU 0:
no or unknown cpufreq driver is active on this CPU
maximum transition latency: 4294.55 ms.
analyzing CPU 1:
no or unknown cpufreq driver is active on this CPU
maximum transition latency: 4294.55 ms.
analyzing CPU 2:
no or unknown cpufreq driver is active on this CPU
maximum transition latency: 4294.55 ms.
analyzing CPU 3:
no or unknown cpufreq driver is active on this CPU
maximum transition latency: 4294.55 ms.