I have ordered a new [PowerEdge T100 server](http://www.dell.com/content/products/productdetails.aspx/server- poweredge-t100?c=us&cs=04&l=en&s=bsd) from Dell for my virtualization lab. _place_holder; This is an entry level server with only (2) 3.5” drive bays and a maximum memory capacity of 8GB. _place_holder; I purchased the T100 with the Intel Xeon x3220 2.4GHz quad-core processor. _place_holder; I kept the rest of the machine basic ( 1- 80GB disk drive, and 1GB of memory which I will remove from the system). _place_holder; That worked out to be around $710. _place_holder; I did splurge and add the second DVD+-RW drive. _place_holder; For disk drives and memory, I went to alternate sources. _place_holder; I ordered a couple of 500GB disk drives from NewEgg, and 8GB of memory from Crucial.  _place_holder; All together, the server was less than $1000.
Seems like a good deal to get a solid, small machine for virtualization.