3d workstation processor question

Hi guys My first post so far, I really badly need help because everybody tells me something different. I don't really know much about that, so it might happen I write some BS here

I want to assemble a 3D workstation and I have performance/money issue, better said a Xeon/Core i7 issue.
What shall it be: Core i7 965 4x3.2GHz @ 8 threads or 2x Xeon E5530 2.4 GHz @16 threads?
The cost would be approximately the same, Xeons might cause an extra cost of about 100€ more for the MoBo.

What do I need: fast frame rendering, not only animation (I could build a home render farm), but fast rendering of stills with lots of ray tracing used. I can use up to 8 threads (special build) for rendering an image, possibly even twice as much.
What would be great: if I could use some of the CPU power for other applications while doing rendering - digital painting, for example, so if one CPU with HT is maxed out, I could use some of the remaining threads. In case that works that way...

In the computer store, they tell me the 2 Xeon quads would smoke the i7 965 although they have "only" 2.4 GHz. But of course they want sell me something, so I really prefer to ask in a public forum.

I'll be going with 12GB ram (fluid sims need a lot) and probably a GeForce GTX 295 (can't afford highend there..)

PLease?

I'd go with the Xeon's but that's just me.

Those Xeon's are I7's anyway so you'll be fine. I want to see how 16 HT's perform.

Corn,

I'm thinking of building a new Xeon workstation also but just with cheaper Xeon's and no HT's. Here's how i think about it. The I7 is a part time 8 core processor with 8 HT core's. A dual Xeon is a full time 8 core system and in your case will have 16HT cores. There is no doubt the dual Xeon will whip the I7's ass.

Make sure you post pics and run benchmarks after you build it. What board are you considering? I know newegg has an Asus dual Xeon board for 224 if i'm not mistaken that is an ATX style so it'll fit in ANY modern case.

All honesty bro asus doesn't even have that board up on there website so i'm not sure about overclocking. I'm HOPING it'll have some sort of ability. Dual 3Ghz+ Xeon's with 6GB in Tri would be SICK

If it will use all cores, the no question the dual Xeon will blast the 965 away

^No. It won't make too much of a gain compared to the price of the 5550.

Also if you are doing 3D rendering you WILL benefit from a workstation graphics card over a gaming card. If you can find an old 8800 you could softmod it and it should be better than the gaming cards for 3D renderings.

Sorry, not yet - I got pummeled by a few major bills, so no new workstation yet I will post once I'm there, as lately the AMD 8-cores have been released the whole thing might get a new face after all....