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Just read somewhere will link in a minute --

that someone with a dual Powermac had same problems and the 'processors needed to be reseated" and fixed the fan problems et all. Try it.

Unfortunately that quick fix didn't work for me :(. I think I'm going to bite the bullet and pick up a new 2.8 8-core refurb Mac Pro. I don't expect new chips to be released by Intel for Apple until at least mid/end Q1 2009, so I think it's safe to pick up the current model. $2499 refurb when it's posted on the Apple site... not bad, still a kick in the pants though. Thanks to everyone for their troubleshooting tips and input!
 
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