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the i7-860 is what i use. that thing is a monster. i cannot, regardless of what i do, max it out.
go with the 860. you won't regret it =) CPU's the one thing i never skimp on. you always want to get the best cpu/mobo combo you can.
also, a suggestion? for cases, go with the Cooler Master 335 or Storm Scout (depending on your preferences on looks). possibly the best cases i've ever worked with, bar none, and they're only 50$/80$ respectively. even the CM cosmos doesn't hold a candle to them. best part? they've got a cutout under the CPU socket to allow you to swap coolers without removing the motherboard, and to allow airflow directly to the back of the cpu. why didn't someone think of that before?