I understand GPUs mean a lot for gamers, but does this needed for image editing too?
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The I5 2500K has a more capable HD3000 graphics, mate that with a Z68 board. A discrete GPU can be added at a later date.
The onboard video chip will suffice for your prescribed scenario. K series CPU's have a better video processor. Its advantages are debatable but considering the price difference is not huge, i'll recommend you to get the i5 2500k.
A discrete GPU is better than a integrated period, it does not hug system resources (ram) like IGP's do. But overall a I5 2500K on a Z68 board is a better combination than a I5 2500 on a H67 board especially if you can use quick sync.
thanks! can I do this?
2500k+z68+FX370: I have a dual input monitor - FX370's DVI port - Connect to Monitor input A - On board DVI/HDMI port (which I suppose will use HD3000 on 2500k) - Connect to Monitor input B
Now using the monitor switch toggle between the 2 display ports (Switch to Display B only when I need to transcode the video - so it can use Quicksync).
And use monitor input A (connected to FX370) for rest of the work?