Yes, the 5960x will be good. Is it worth it? Maybe. My 2600k can already do medium 720p60 with some custom settings for better quality, you may be able to do slow, MAYBE even slower, but thats a big maybe. If you do get this CPU, please report how it fares.
That's normal, x264 will use variable amounts of CPU depending on the scene complexity. If it drops below your target FPS then you need to put the preset faster or lower your resolution.
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