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Intel Xeon E3-1220 vs Intel Core i7-3820

I'd go for the E3-1220 v2 (Ivy Bridge) as it offers more value for money.

There is also the E3-1230 V2 which is ivy with hyper threading.

Although they are all poor choices if you intend to overclock.
 
The Xeons also don't have integrated graphics and support ECC memory, I guess the question here is what are you looking for in a processor?
 
as I said you can't really ask which is the better processor without stating requirements

Comparison here

The i7-3280 has more cache (10MB compared to 8MB) higher clock speed (can be overclocked too) hyperthreading and supports more RAM.

The Xeon has a lower TDP and supports ECC. It is also cheaper, plus 1155 boards are cheaper. However why the Xeon rather than its desktop counterpart (i5-2500 or something similar?)

The X79 and Z68/77 chipsets have various advantages depending on usage, so you'd be better off choosing that first and then your processor.
 
If you don't intend to oc massively and are ok with say 3.8 - 4Ghz for everyday use, then the Xeon E3-1230v2 with hyperthreading is a very good choice for only £170ish.
 
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