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Yeah, your system is definitely underspecc'd... this thread actually belongs over in the hardware forum, and one of the mods may move it, so don't be surprised if it gets moved.
Most of us have found that processors in the i7-9xx line have done a very good job for us, and are pretty much the fastest things out there, definitely best bang for your buck. Also, while 8GB of memory is the minimum requirement from Adobe, 12GB+ is required to really USE the software effectively. I routinely run multicam tracks with mixed HD and 4k footage, and I'm running a relatively "slow" i7-920 with 12GB of Ram and a GTX-285 graphics card, with stuff spread across four logical disks, two of which are RAID arrays (one for OS/Programs, RAID array for projects and scratch, RAID array for data, and single drive for exports).
I think the reason you're having trouble with the DVCPro HD codec is that, because it is compressed, it requires the CPU to "unpack" the footage, frame by frame, where uncompressed doesn't require that unpacking process.
I'm sure one of the hardware gurus like Harm will post back with ideas on a better specc'd system, but just throwing numbers around, I'd say you should be able to build a well-powered system for under $2k. Also, don't forget that hard drives are important in this equation as well. I notice you said you were running a RAID, which is good because that probably means you've got your stuff on a different set of drives than your OS and Programs. But as you research a more powerful system, make sure to keep hard drives in mind as you go. Generally a minimum of three logical drives are recommended: one for OS/Programs, one for Project Files and Scratch disk, and one for your actual data.
thanks for your reply. I have also found out I am running the wrong OS in Windows 7 home premium. That OS is not multi socket capable-ie. can not see or use the other processor.
Here is a useful link from MS"
At the bottom of the page it states that Home Premium won't use multiple CPUs. Before trashing my system I will use the online upgrade to 7 pro and use all four of my cores first. I am going to need it anyway. Thanks for the response. Jack