What settings? Without knowing your exact settings, you won't be able to benchmark it. You should skip 2-pass and just use the Apple TV prsetthe best "bang for your buck" preset imo. I used to do 2-pass but it's really a waste of time for the little quality difference.
Too bad handbrake doesn't really scale beyond 4 coresthat's mainly a limitation of x264 (the underlying encoding library) so you won't see Handbrake taking advantage of Grand Central anytime soon, unless someone forks the project.
I'm using HB mainly for archival purposes so I'm looking for near lossless reproduction. I have a 1.5TB drive dedicated solely to media and in the near future I'll take the AppleTV or Mini plunge as a way to stream movies, pictures and music from my iTunes collection on my MP to my 52" Samsung LCD TV. I have a high-end amp, klipsch 5.1 surround system and everything is wired using HDMI. The idea is to use the MP as a media server and have an on-demand viewing experience for all my media.
Note, though, that x264 is full of asm optimizations for these new Nehalem chips which give a very significant speed boost at the same clockspeed compared to previous gen CPUs. Also, x264's issues with 8+ cores only come into play when using very low quality settings -- it's not that it can't take advantage of that many cores, just that the way it generates and closes out its threads has some overhead if the threads have very short lifetimes.
I could have sworn that HB was making use more than 4 of my cores. When ever it is running and I take a look at my activity monitor it always says in the CPU column between 400 and 500 and the number of threads is ~30. Maybe I'm just reading the monitor wrong.