I'm trying to figure out what processor to choose from these two types in a new computer. I will be using a lot of adobe CS3 such as Photoshop, Dreamweaver, Illustration, Fireworks, etc. many of these will be running at the same time. Didn't want to spend an exorbitant amount of money but wanted to get the most bang for my buck.
The i7 950, is about as good as it gets for what you want. It's the $300 chip and can be overclocked quite well. Wait until April and the i7 2600K will be available again and it beats an i7 980x in most benchmaks. It is also $300. One of the 6 core AMD chips may be a cheaper route. They do quite well in multithreaded apps. You do not need to spend a thousand on the chip alone to get near ( i7 950) or mostly better ( i7 2600K) performance.
Wait for the I7 2600K to become available it will give the best bang for your buck. If you can't wait then the I7 950 can be a good deal depending on where you are getting it at. The 980x is a bit to expensive and for your needs may be overkill.
You can compare the differences between the Intel® Core™ i7 processor Extreme Edition 980x and the Intel Xeon® X5680 on this site http://ark.intel.com/Compare.aspx?ids=47916,47932, . It really comes down to if you are going to run two processors or only one and do you going to use ECC or Non-ECC memory. If what you are going to will take advantage of 12 and 24 threads then go for the Xeon if all you are going to be doing is some gaming then most likely the Core i7 Extreme Edition 980x do what you want.