WHS 2011 is very simple to use if all you want to do is automate backups of Windows boxes.
Ubuntu is just as easy to install as windows these days, for a home server no real reason not to use it.
That is VERY old. Up to Generation 9 now.
but home use its about 100 time more powerful than a nas box
What processor has it got in there?
Granted you won't pick anything new up for that price, but if it's got a low/medium-end chip, it'll only be on par with processing power of a new system, albeit much more power hungry.
You can use your W7 OS if needed, doesn't have to be a server o/s to install on a server.
I would go for ESXi on a pen drive, then install whatever you want inside that, with the VMs stored on the HDDs. At least then you're not tied down to a single OS.
That's if you want to spend some time playing and setting up of course.
It's not the CPU that's power hungry. It's everything.it as dual quad core Xeon X5365, i am not saying it will be 100 time faster than a modern server but i was looking at a £90 Thecus NAS N2310.
if i find it to be power hungry i can take a cpu out
It's not the CPU that's power hungry. It's everything.
That Xeon is around 2x as powerful as the G1610T in the MicroServer Gen8, so given you have 2 of them, around 4x as powerful overall. But probably around 10x the power consumption, which isn't cheap in the UK. At 11p per kWh (what I pay for my electricity), 200W is £0.53 per DAY, or £193 per year. 200W adds up quick when it's running 24x7.
The £20 is worth paying just for the experience of playing with and setting up a proper server. But definitely not worth running 24x7.