Help Me Build This System Pleeeeeze!

I am looking to build a new system that will be used mainly for DVD playback as well as editing VOB files and format conversions since I like to do alot of splicing with VOB movie files that will involve encoding. I am trying to find a balance of great performance without going over $1000, I'd much rather spend less but It looks like thats the area this is going to fall under without sacrificing too much on performance. My goal is to buy these parts over the next couple months so I dont go broke too fast. Any help and advice is appreciated and welcomed as I am a mid-level computer user.

OVERCLOCKING: No

Main Use of System: VOB editing and Home Theater. I need HDMI outputs

Price Range: $800-$1000

Country: USA Website to order parts from: www.newegg.com

OS: Mostly Linux, but I use Windows for WinDVD and DVDFab programs. I cant find linux programs that are as effective.

I've gone through newegg and put some parts that I think would be able to get the job done. Im not biased to a manufacturing type, but Intel seems to be supported more for Linux.

Full Tower and PSU - $250 http://www.newegg.com/Product/ComboDealDetails.aspx?Ite...

MOBO - $190 http://www.newegg.com/Product/Product.aspx?Item=N82E168...

Memory - $104 http://www.newegg.com/Product/Product.aspx?Item=N82E168...

CPU - Is the extra $80 worth it?? Will I see a difference in performance that will justify the extra money?
$200 http://www.newegg.com/Product/Product.aspx?Item=N82E168... - i5
$280 http://www.newegg.com/Product/Product.aspx?Item=N82E168... - i7

Graphics Card - I cant seem to find one thats suitable for my needs. I need HMDI, but would like to have dual DVI outputs.

I will be using 9 HDD's - (5)2TB WD Caviar Green, (4)1TB WD Caviar Green. which I already have.

If you know of any better products I would like your input.