One problem with that previous configuration is the mixture of an Intel Xeon class processor with a desktop series chipset and standard desktop non-ECC RAM. That will not work. While yes the Xeon and the motherboard are both LGA 1155, the motherboard is definitely not a business class desktop motherboard, and is not a server-grade chipset that will run a Xeon chip, they use different memory controller configurations and have access to different PCI-Express slots and additional compatibility differences.
Yes, on a server-series LGA1155 chipset, like the C202, C204, or C206 you can put in desktop series Core i3 processor, but the reverse is not true for the desktop chipset motherboards. Additionally, on a C202, C204, or C206 chipset motherboard you can run non-ECC memory if you're running a Core i3 processor, but stepping to any Xeon processor requires either ECC Unbuffered or ECC Registered memory depending upon the chipset series and processor series. This is true for any server-class processor.
Ironchef, I wouldn't put too much stock into someone saying that AMD processors overheat. In fact, every single AMD processor I have ever used in over seven years of building computers, every AMD system has run cooler than the similar Intel configuration. In fact, one of the biggest complaints about the latest generation of Intel processor, the Ivy Bridge that replaces Sandy Bridge, is that it runs hotter than its older generation in several situations! This is quite baffling, as Ivy Bridge is built on the much smaller and cooler 22nm technology compared to Sandy Bridge's 32nm technology. This reduction in die technology should translate into a noticeable decrease in operating temperatures, but in fact the opposite occurred because Intel chose to use a less effective internal thermal compound inside the heat spreader to help save cost.
To give you an example, most of the computers that we ship out are based on Intel, and always use a high-performance after-market CPU cooler, usually either the Cooler Master Hyper N or Cooler Master Hyper 212 Evo, or a closed-loop Corsair H80 liquid cooler, each with high-quality thermal compound and high end chassis to assist with airflow. These systems at idle run around 30-35 degrees Celsius for air cooling, or 25-30 degrees Celsius for water cooling. At load, they get up to around 60 degrees Celsius. Compare this to an AMD FX processor which draws 125W, much more than the Intel's 95W/77W meaning it should be running much hotter. However, instead these systems idle around 20-25 degrees Celsius with air or liquid cooling, and at full load only hit about 45-50 degrees Celsius. I've seen this same behavior for years and years with AMD and Intel processors, so it's not just this or last generation, it's really just an assumption. I thought the same thing too until I really started looking at the numbers and comparisons years ago.