Thanks for all that - I can't afford SAS drives so I have gone for the SATA but they are raided. I will check re the warranty.
As for the info about RAM - very interesting - I shall be looking into that. I will be using Server 2008 if that makes a difference
Little-Miss' server sounds about right though, and is comparable to the spec we've just ordered for the new server for our similar-sized network. As others have said, since this is the only server on site, don't scrimp on redundancy. Also consider teamed network cards.
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