Originally posted by: Mills
If this were me, I'd pick up the drive setup (though I think you'd get much better performance out of RAID 10 than you would RAID 5 but I'm only going off of intuition here), and the controller card, and wait on the next gen stuff coming out early next year. If you need the speed now, I'd go with a i7 920 and an x58 board, since everything will be compatible with the upcoming high end 6 core chips and you'll only have 'wasted' the $ for the 920. Ebay it or something and you're not at a huge loss.
I'm not familiar with how performance scales in video encoding to multi-CPU setups, and personally I don't think it would be worthwhile to make the huge price leap to Xeons, but should merit some research.
Good luck,
Mills
It scales pretty much perfectly actually, and is another reason he should go X58 and i7 920 D0. 6 cores with HT is like ZOMG for video encoding.