Yeah it's getting overclocked, the water cooling I've deemed necessary. The 8350 can reach 5.0GHz very safely I hear
I was originally going to upgrade my current pc, but I've just sold one I built and if I sell this one too, I'll have the cash for that build no problem.
I'm pretty sure it's the best I can do for 1k. I went for the AMD over an i5 to help with rendering videos, and because (apparently) future titles are going to be optimised pretty well for the AMD processors and hyper threading. For example I'm quite sure Battlefield 3 makes use of this.