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There are currently 23 people using the same video card with the hack in the PPBM5 Benchmark
Specifically look at Nachiketa with a total score of 730 seconds. His system is pretty close to yours.
There is no need for transcoding, PR does it all natively. If your system is too slow, you can have a look at Cineform, but that requires about three times more disk space and is not free.
Start reading here and on the Adobe Forums: Forum: Hardware Forum to find several articles of interest to you. For instance http://forums.adobe.com/message/3687882?tstart=0#3687882
Thanks for the quick reply. I'll look into what you said.
Quick side question though - if I were to upgrade my cpu +mobo what would you reccomend? I've been looking at the i7-2600k, but I have no idea what motherboard to go for. Would that upgrade provide a signifcant increase or do I also have to upgrade my videocard to get anything noticable?
That upgrade would see a significant increase in performance. Using the hack for your graphics card could add even more.