Do I need to up my rig for DVC Pro or XDCam?

Question

Hi, all.
I've been editing ACVHD shot with a Canon Vixia camcorder, which hasn't been much of a problem in terms of file sizes and processing.  We're looking to improve our video capabilities and I've started shopping for a decent pro-sumer video camera.  I'm looking mostly at Panasonic and Sony cameras and would like to know something about how the DVC Pro or XDCam formats work with AE and Premier.  I'm assuming that these formats will produce much larger files, requiring more storage and possibly more processing power.  At the moment I'm running a Dell Precision 490 tower with these specs:
Windows 7 Enterprise - 64 Bit OS
Processor: Intel (R) Xeon (R) CPU  5160 @ 3.00GHz (2 processors)
4.00 GB RAM
150GB HD
I've been running CS5, but an upgrade to CS6 is on the way.  Project files have been stored on a network server, so the small HD hasn't been a problem, but I'm usually writing and reading over ethernet.  Our finished videos usually run about 3-5 minutes, but occassionally we might do something running between 20-30 minutes.
So, my questions:
- will this system, as is, be able to handle prosumer video formats?  If not, what kind of system or external hardware would I need to bring me to at least entry level specs for this kind of work?
- will working over the network be an issue?  If so, what will I need for internal/external hard drives?
- are there other questions I should be asking?  What am I not considering?
I don't know how much money I can get for this, so I need to bring my bosses a number that won't scare the hell out of them.  I can probably bring the camera and assessories in for under $10,000, but I'm guessing that adding two new high-powered work stations might double that figure.  Not sure exactly where the line is.  Can anyone offer any insight or advice?  I certainly don't want to invest in a decent camera only to find I don't have the muscle to edit the footage.
My thanks in advance for any help or information.

Answer 1

Well, the deal is that I work for a State agency where I produce videos for public consumption via our YouTube channel as well as training DVDs and some other applications.  It took me about seven years to get any money to work with (used my own personal cameras until then), and even then was given only $3000 to buy a video camera, DSLR, lighting, and teleprompter.  After a three more years of whining, they've finally decided to "resource" our production effort.
I suspect I can wrangle about a $10,000 budget, but I'm hoping I might be able to get as much as $15-20,000.  This has to buy a camera, accessories, and anything else I may need for the foreseeable future.  Renting isn't really an option and whatever I get now is probably what I'll be working with for the next 6-10 years (if I don't get a better job or hang myself before then), so I want to invest in technologies or formats that have staying power.
That's why I'm asking whether I need faster machines to handle these pro and prosumer formats.  If I need to factor new workstations or other hardware into my calculations, I'll need to plan for that now.  From what I'm reading, it seems that it'll actually take less processing power to work with intraframe compression, but this may be offset by the much larger file sizes.
By the way, I really appreciate everyone's responses.  This community has unquestionably been my most reliable resource for over fifteen years now.