Some assistance selecting a new Mac Pro, please!

I have been a long-time Mac user, since 1991 anyway. I have always had good Macs - but never had a need to get the professional macs.
Today, I think I'm ready for a Mac Pro. I'm tired of constantly having to buy things to make my Macbook Pro 2.4GHz Penryn fit my lifestyle. i.e. having FW ports on the wrong side of the machine, and the smaller display, and having to use a slow external HDD for Time Machine. I'm also ready to be able to upgrade and expand my Mac without buying a new one every year... and a new 23" HD screen would be nice as well.
I do a lot of web development, and want a machine that stays on 24hrs a day. I will use it for Aperture, CS3, testing sites across platforms (OS X, XP, Vista, Linux), DVD creation, streaming movies and media to my Apple TV, recording off-air TV with a tuner. I also convert ALOT of video from clients in to Flash Video Format, which can be time consuming on a Macbook Pro as well as heating the sucker up to no end!
I don't : play video games (except the occasional Sim City-type game), or a Halo break for 5 mins - but I WOULD if we had better Mac games!
Also don't do any 3D rendering, professional photography, etc...
So, to the question :
Is a single 2.8GHz a huge downgrade from a dual 2.8GHz Xeon? Will I see a lot faster video conversion times with the dual? For the apps I use (mainly CS3 suite doing print work, web work, etc...), will there be much of a difference between the two machines for what I'm doing?
Appreciate the info... thanks in advance for the replies!

Today's Penryn already can dynamically increase frequency and voltage on one core when the other is idle, to improve single threaded performance. and Intel is still making improvements to Xeon Penryn.
http://techreport.com/discussions.x/15467
Compressor 3 is one app that has been tweaked for multi-core.
That is somewhat the exception (see below)
http://www.google.com/search?q=applecompressor3
QuickTime? not much.
“Nehalem, then, is all about replacing the plumbing with very wide pipes and beefing up the pump in order to take full advantage of all this new capacity; this way, the execution engine can get much closer to reaching its full potential.”
http://arstechnica.com/articles/paedia/cpu/what-you-need-to-know-about-nehalem.a rs
the single biggest change and performance gain (made in the core) is simultaneous multi-threading which could improve server workloads anywhere in the range of 10-40%. http://realworldtech.com/page.cfm?ArticleID=RWT040208182719
Nehalem is about 33.5% faster clock-for-clock than the Core 2 Quad Q9450 on average... the integrated triple-channel DDR3 memory controller does wonders, nearly doubling memory bandwidth http://techreport.com/discussions.x/14874
Larrabee high-performance parallel processing and graphics power architecture will allow it to accelerate anything from high-definition video and audio processing
will be compatible with DirectX and OpenGL application programming interfaces. Intel will be pushing for different rendering paradigms like ray tracing, the company won't have to wait on developers to make its silicon useful to gamers—Larrabee should be able to run existing games. Larrabee's design could also make it well-suited to the hybrid rasterization/ray tracing
... you may be disappointed to find that this system's eight fast CPU cores can't always outrun the top single-socket quad-core systems.
The reality is that only certain types of applications will fully harness the power of a system this exotic—and we are, by and large, using the best examples of widely multi-threaded software we could find in their respective categories. Programs that don't scale well beyond four threads are the norm, not the exception. That's both a developer support problem and a computer science one; extracting performance from multiple CPU cores can be difficult.

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