@vman81: Somewhat off-topic:
While expensive, some people had good results using Amazon S3 and EC2. I\'ve not looked into it at any real detail for a couple of years but by the looks of it, it\'s only gotten cheaper, especially with EC2 Spot Instances and S3 Reduced Redundancy. Both of which wouldn\'t be a problem for your application.
The GPU Quadruple Extra Large should slice through the task like a hot knife through butter although this post
suggests non-GPU to be better.
You\'d wanna get your filesizes right down though, as EC2/S3 bills you transfer *out*, at $0.12 per gig that\'ll mount up at $120 per TB. If you see 50% output, that\'d be
EC2 (or S3) traffic out = 1.75TB x $0.12 = $210
+ EC2 processing + maybe some S3 storage to make life easier.
There do seem to be some ready-rolled solutions for cloud transcoding, ankoder offer an interesting (if expensive looking) solution, zencoder also have an interesting service. It may also be worth looking at Rackspace or one of the other cloud processing people. The sums are rough but if it\'s a task you\'re looking to offload to something/somewhere other than your server, it may be worth a look. It may work out cheaper than building a conventional x64 rig and powering it. (Although $210+ ain\'t pocket change!)
Edit: Changed to the right URL tags, I\'m not on Reddit!