Once all my questions have been answered I will finally built my first rig. With most of the answers pointing to I7-920. I'm planning to get this as my cpu. here is my prospect components.
MOBO: Asus P6T Deluxe v1 (Any oher brand you suggest?)
PSU : Corsair 650W
Memory: Not Yet Decided (looking for 6GB 1600) please advise.
HDD: 750GB 32MB
Graphics: GTX 260 (to be SLIed in the future)
Cooler: Coolermaster V8 (but thinking of going Liquid if found a best cheaper alternative from this forum)
Planning to use this as a workstation doing multitasking Video Editting, Programming, Graphics Design, 3dMax, Maya, Autocad, VMWare Farm, Virtual Database Server and seldom play games i.e. Prince of Persia and GTA4 (Each of this while watching Children Videos for my Daughter). And also planning to run PC 24/7.
By The way, planning to overclock if found necessary but probably upto 3.2.
3.2 is posible on some good air cooling and would be far easier and (more then likely) better for the system then water cooling - Intel designs there VRM's to have air flow from the CPU HSF cool the VRM (around the socket) - water cooling stops the air flow (no CPU HSF blowing air around) causing hotter spots around the CPU HSF and may do more damage to the motherboard over time (depending on motherboard design).