Oops!...I did it again..

No that wouldn't be possible, the OS thing without some virtual layer.

Win7 is limited to 2 processors so that wouldn't work, for Windows you would need Server, preferably 2008 R2 to get half decent performance, but for folding Linux is the business. :)
 
Nah Westmere x5650's or L5640's are the sweet spot for folding on Xeons, 5500's are the old Gainstown 4 core.

So your looking at more like £2K+ with memory

Not sure where you are going with the multiple OS thing, but let us know how you get on with it :)
 
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