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This paper presents a cost-effective and high-performance dual-thread VLIW processor model. The dual-thread VLIW processor model is a low-cost subset of the Weld architecture paradigm. It supports one main thread and one speculative thread running simultaneously in a VLIW processor with a register file and a fetch unit per thread along with memory disambiguation hardware for speculative load and store operations. This paper analyzes the performance impact of the dual-thread VLIW processor, which includes analysis of migrating disambiguation hardware for speculative load operations to the compiler and of the sensitivity of the model to the variation of branch misprediction, second-level cache miss penalties, and register file copy time. Up to 34 percent improvement in performance can be attained using the dual-thread VLIW processor when compared to a single-threaded VLIW processor model.