I briefly used my Precision 690 as a 'desktop' when I only had 16GB of memory in it. The machine did much better as an encoder/decoder/transcoder than a gamer against my then Q9550 using the same card (Radeon 5770 1GB) before I converted it to an esxi box.
The X5365 3 Ghz Quad-core is about equivalent to the QX9650 under quick comparison, except for the difference in die size and cache memory; you just end up with a hotter running chip in the xeon, and usually louder fans on air to compensate for it.
Under less than 10 pct load, the precision is quiet, but when it's running full load it is comparable to a tower server
FBDIMMs are also not cheap, unless you plan to use 8 2GB sticks, and have high latency due to buffering, which if I remember correctly increases with the amount of sticks, and you should always use at least 4 sticks to maximize the benefit.
SharkeyExtreme did a review back in 2007 with some benches, etc.
http://www.sharkyextreme.com/hardwa...26/Intel-Xeon-X5365-V8-Performance-Review.htm
IMO, one would still be better off with a locked i5, some performance DDR3, and a decent graphics card than a dual s771 for gaming.