CPU upgrade versus new Sandy Bridge box?

I have a dual xeon dual core 3.2Ghz dell Precision and I'm trying to decide if I should replace the processors with the quad core x5365's or build a 2600k sandy bridge kit. I think the 2 quad cores might be faster than the quad core sandy bridge. I do software development with multiple VMs running, not a gaming. Any advise ?
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More about upgrade versus sandy bridge
  1. Two quad core x5365 shouldn't be as fast as an i7-2600K, but that CPU is not the best option to run VMs (unless you plan on overclocking). The i7-2600 with vt-d support would be a better choice.
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