Depends what you mean by best folding perf for $.
Overall best folding perf is gonna be running the smp client and the c2d or c2q's are the best performers (better floating point than amd). They are simple to oc on intel chipset mobos and will oc from 25%-50% on air depending on how good your chip is, mobo and to some degree on memory.
A well oc'ed 21x0 c2d is gonna be the cheapest entry point but will only get up to 1500 ppd depending on wu and oc. They also can't run 64 bit linux or vmware. Some of the current wu's are cache intensive and the 21x0's are not gonna do very well on them. E6300/6400 are ok if cheap but will be held back by their 2MB cache.
Next up the cpu cost range is gonna be any of the 4MB cache c2d's. With a good oc on a 6320 or 6420 you will produce as much as most e6600's. The 6320 will need faster and more expensive memory to perform as well as 6420/6600 since it runs a lower multi. A well oc'ed one will produce 1800-2400 ppd depending on wu mix.
Overall best perf for the $ is gonna be a quad and the q6600 GO stepping will be best in general if you are going to OC. B3 q6600's are a bit cheaper, but will usually require more volts to get a similar oc to a GO and so will cost more to run. The G0's are more likely to get a higher oc as well. Xeon x3210 and x3220 are also good candidates especially if you get the newer G0 steppings at similar pricing to the q6600's. A well oc'ed quad will produce 3000-4500 ppd depending on wu mix, os, and oc.
There are good cheap quad oc'ing mobos like the giga p53-ds3l at < $100.
Memory - you will get added performance if the memory oc's so you can run it at > 1:1 ratios. Any 6400 rated ram should do fine. Some 5400 will also oc well. You can get by with 1 GB dual channel but 2gb is a better choice and usually is not twice the price of 1 gb.
PSU - a STURDY 400 + watt psu should work ok. <$100
video - for a dedicated folding rig don't waste money on high end cards ... you won't want to fold on them with SMP on the quad, and they draw more power and produce more heat. A cheap pci video card that supports your monitor resolution is all you need. A low end pci-e card is ok too. $15-$30.
A small hdd - 60+ gb is more than enuf and allows dual boot to win/linux and vmware options. I prefer sata over ide.
You only need a cd/dvd drive for 1 time setup so you can borrow one from another rig.
For a dedicated folder, I like a caseless setup to simplify cooling as long as you have a safe place for it. If you need a case, something that will allow good airflow.
A few extra fans for cooling NB etc. $10-20
A lowend HSF like the Arctic Freezer 7 will work but at higher oc and volt settings will limit the oc. There are better ones but i am not up on the current best $20-$60+.
Linux is free and the 64 bit ubuntu 7.04 performs better on most smp wu's atm than windows smp. I would avoid vista although it works. I still prefer wxp if you want to go the windows route.