FCS for automating compressor batches and thumnail creation

Hello,
We're in the process of putting our video archive online, and I've been tasked with finding the best way to encode all the media we need.
I've found a workflow that's clunky, but it works using FCP and Compressor. My question really, is can I do all of this in Final Cut Server, and better still - will it speed things up?
_*Existing workflow*_
The starting point is a set of clips, a hundred or so per tape, that are ready and exported from Final Cut as DV files.
1. Create compressor presets with watermark, timecode reader, and text overlay with tape number.
2. Repeat for both flash versions and a quicktime at full DV.
3. Stick the media into compressor and apply presets, then submit.
4. Upon completion, stick the new DV through Sorenson Squeeze.
5. Using Automator and some quicktime actions, get the first frame of every clip and save as jpeg for thumbnails.
6. Batch resize all these thumbnails in photoshop.
7. Upload all files to site via FTP.
That's pretty much it. So my questions are:
1. If I set up all my compressor presets, can I bring these into FCS?
2. Does it support flash?
3. Can I use watch folders to automate any of this?
4. Will it submit these various things to a compressor cluster?
5. Can it make thumbnail images of the files (this would be hugely advantageous, as the current system is so clunky)
6. Does FCS include Compressor?
7. I'm looking at buying a machine to get all these encodes done faster. Should I spend more on RAM or processor for faster compression? I'm under the impression that it's more processor intensive.
Any help in any of these areas would be much appreciated!
Best,
Ben

re 1: Yes, you can use your compressor presets in FCS.
re 2: No, FCS/Compressor does not natively support Flash. However, there is a slick add-on for Compressor called Episode (http://www.telestream.net/products/episode_series.htm) that will allow you to encode Flash (and Windows media, and 4:2:2 Mpeg2, etc) using Compressor.
re 3: Yes, you can use watch folders to automate the compression, ftp upload, and thumbnail generation.
re 4: Yes, FCS supports clusters.
re 5: see re 3:
re 6: Yes, FCS includes Compressor.
re 7: If only a few people are going to connect to FCS simultaneously, spend the money on the processors. If a bunch of people will be connected at the same time, you may want to look into more RAM and a fast hard drive configuration.

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