Since I owe this community greatly, let me provide my lessons learned...
My goal was to convert a large media collection (around 10 TB) on a remote system so it doesn't bog down my primary machine. I built a WHS2011 system (very nice) with about 25TB of space. I wanted:
A. A primary folder of Movies in .vob/.iso format to watch on wired connections in the house.
B. A secondary folder of large format continuous .mp4 videos to watch via remote media streaming over the internet on a laptop or such when we travel
C. A tertiary folder of mobile phone sized videos to watch in the car, waiting, for the kids, etc.
I already have the .vob/.iso folder. To create the second and third I built an i3 2120 system, 8gb RAM, on a Z68 mobo. I would use this for quicksync purposes as I didn't want to have a discrete gpu (power savings since it would be on 24/7).
Lessons: IntelQuickSync indeed does work faster than cpu only. And...at the resolutions I'm transcoding to I don't notice a difference in quality. But...it won't work if you do it remotely via RDP. IT WILL WORK IF YOU USE RAADMIN - something to do with drivers, etc. Additionally, Handbrake does not currently support Quicksync.
Okay, back to transcoding...