Currently I have an old server 1 x 600mh 256ram  Win Xp Pro  SQL 2000 IIS.  I only have 15 sites but I am ready to get serious.  I would like advice on the best known hardware and software configuration.  I am sticking with Windows.   I am considering the following server: 

PRODUCT NAME: Rackserv 1035
MFG PART NUMBER: 1035-30-6 
1 X INTEL SERVER PLATFORM S3000AHLX 
1 X INTEL PENTIUM 4 541 3.2GHZ 1M 800FSB S775 EM64T
2 X 256MB 667MHZ ECC DDR2
2 X SEAGATE 160GB SATA 8.5MS 7200RPM 8MB NCQ
1 X RAID 1 (MIRRORING)
1 X SLIMLINE CD-ROM IDE BLACK
1 X INTEL STORAGE SATA RAID (0, 1, 10)
2 X INTEL PRO/1000 82541PI GIGABIT ETHERNET
1 X ATI 16MB DEDICATED MEMORY SVGA VIDEO CARD

Here are the questions I am wondering about:

What is the best server for DNN under $1K

If I install win server 2003 will my install be the same as XP Pro

If I choose a 2cpu server will I have to get another sql 2000 license as I only have the single cpu license now

I assume the 2 NIC set up is for stringing servers together, but can two NIC be set up to allow more traffic to the server instead of one

Any other advice also greatly appreciated

hmm, I can't comment on the software or licensing, but from the look of those specs you'll soon be the owner of two old servers.

Surely you can save a a littel more money and get a current-spec system?

I'm not sure if two nics is as good as one big double-sized one in a server rack, but if it's goiong to be connected to more than one other box then you'll need two fast connections.

As for the hardware... You really should be buying a modern Intel Core 2 Duo or Quad core chip. They're cheap, cool, low power and fit any budget - you don't have to buy a Xeon for a server, but it's nice to have one.

The 3.2Ghz 541 you listed is a very outdated Pentium 4 Northwood desktop chip, several generations old. My desktop was a 3.2Ghz P4 about 3 computers back down the track, and whilst it was nice at the time, it's utterly gutless compared to the 2.4Ghz quad core I'm runnng now. The quad core CPU also cost far less to buy. Note that the current CPU's are much quicker per Ghz than the old Pentitum 4 models were. Even a single core 2.4 Ghz of today would be preferable to the old 3.2Ghz model.

I've had a browse around ebay to see what prices are and it does look you'd be facing up to $2000, but the increase in power is huge. I'm looking for example at item 370026211160 a new Dell Poweredge server with two quad core CPUs, 2Gb ram and twin 10,000 rpm drives. something like that would provide many many! times the grunt that the $1000 machine would give you.

Item 170196946027 on there is an HP ProLiant DL140 G3 Quad Core Xeon 2.0GHz  with 1GB Memory for $1350. It would need another drive to raid it up, but again, the increase in power over an old P4 would be immense.

If you can afford to save some more money, do try and get something current like these items.

And then set me up a VPS on it! 

Rob