You cut corners and try to save a dollar here and there. You are going to spend more in the long run. Landscape timbers are not built for fence. It will break from the bottom due to rot faster than a 4x4's.
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2 3/8" is the standard metal fence posts. They carry all the accessories for that size at Home Depot and Lowes. Metal post run about $16 for a 10' piece but they will last so much longer than the timbers. Pressure treated 4x4's work well too, and they run$8.17 a piece. But your biggest headache won't be the initial cost of the fence posts.... It will be in 2 yrs when you are jack hammering them out and replacing them! Do it right the first time, you'll be much happier that you did.
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