That's 500 watts of electrical power, not thermal power. But you can figure 50-60% of that ends up as waste heat. That 1kW power supply puts out 72A continuous on the 12v rail, making it run at 50-60% capacity (which is generally a switching supply's most efficient level). It might sound stupid (1kw), but it's actually a pretty decent purchase.
I'm waiting for the day when you can buy seperate 12v and 3.3/5v transformers. Computers need 500w on the 12v, but not anything more than 200w on the 3.3/5.
As for the 8800's, size was the first thing that occured to me when I saw the pictures. The Coolermaster "Stacker" series is a decent case, but you might have to go with a file-server case.
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