Why am I taking so long to encode on a screaming computer?

So I purchased CS5 a bit ago and was pretty happy with my encoding speed considering it was on a 2 year old computer (P4 2.8 quad core, no HT 6GB RAM)
I wanted to see if upgrading my GTX 8800 (325MB) to a GTX 470 (1.3GB RAM) would speed up encoding. Unfortunatally when I removed the old video card the motherboard smoked.
So I did what anyone (here) would do, I planned a massive upgrade.
New Computer:
Intel Core i7 930 (socket 1366) with HT
Gigabyte X58A-UD3R MB
12GB RAM
Nvidia GTX 470 (1.3GB RAM)
Raid 0 7200 RPM (2 drives) Slave (where media is)
Processing .mts files 1080 60i and my computer with $1200 in new parts seems to be actually slower than the old one??? ATM it is processing a 25 minute file at 720p 1100kbps which is taking 50+ minutes to encode.
If anyone has any ideas, they would be very much appreciated.

I am encoding the next quality in the sequence, same file, 320X180 400kbs, 52 minutes left. My CPU is pegged at 100% for all 8 processes, 5.6GB ram in use.
So far the things I have been trying is creating a RAID, moving scratch disks, and asking for help
What is OE?
BTW I looked at the article, CPU affinity is set to all 8.
1.The codecs used in your source clips = AVC
2.Premiere Pro =CS5
1.Version number = 5.0.0
2.Installation language=  English
3.Updates applied =NA
4.Project/sequence settings =  AVCHD 1080 60i
3.Operating System = Windows 64bit
1.Name = Alan
2.Update/patch level =Current
3.Installed language =English
4.Display resolution and color depth. 1920X1200 32bit
4.CPU type and speed = Intel Core i7 930 Quad Core 2.8 GHz (socket 1366) with HT
5.Amount of memory (RAM) = 12GB
6.Video card = GTX 470 (1.3GB RAM)
1.Manufacturer = Nvidia
2.Model GTX 470
3.Driver version 8.17.11.9741
7.Number of monitors (displays) in use 1
8.Audio card Onboard
1.Manufacturer Realtek
2.Model Not listed
3.Driver version 6.0.1.6029
9.Each hard drive's capacity and space remaining
C= 1500 GB, Remaining 462 GB
D= 2000 GB, Remaining 2000 GB RAID 0 (2 drives)
E= 4000 GB, Remaining 1662 GB RAID 0 (2 drives)
1.Disk setup
C = Primary OS and Installation of Adobe products
D = Scratch Disk
E = Media Disk
10.Hardware capture device = Panasonic AG-HMC150
1.Manufacturer =Panasonic
2.Model =AG-HMC150
3.Driver version number

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