i have the same system with the same amount of ram and had no problems running ae7. there is an update for ae on adobe (7.0.1 i think) you could try that… i had run the update before running ae7.
make sure the ram was installed correctly, the macpro interleaves its ram, if its not installed correctly in matching pairs (same size, speed, manufacturer) it can lead to problems, ususally system crashes though.
if you reinstall, reboot first in safe boot mode (hold shift during boot) then install. you may also want to run the hardware test on the os x install disc, this can tell you if you have bad ram or another problem (hold the ‘d’ key down when you boot from the disc to bring up the hardware test).
you said you had 4 750 hds are they all internal? and are they all a striped raid? i would recomend having one drive as your os and application drive, then the other 3 can be striped.
are there any other particulars of your system pci cards, third party ae plugins, etc.?