ok this is how I got my server / use it.
It is downstairs on the floor next to TV - quiet enough in there.
Running Windows 7 64 bit.
have upgraded the ram to 8gb
changed the gfx card to an ati silent 6450 low profile gfx card
connects to my TV via HDMI (sound comes through HDMI)
put in 2 x 2 tb WD green drives
(put the other one I bought in the main pc upstairs.... this syncs with one of them downstairs....)
I run Allway sync to sync between certain movie and music / software folders....
sync backups from all computers and store them on server and main pc vice versa.... (with a bit of extra backups to google drive

I have it connected to router via ethernet cable - another cable runs upstairs (hidden so wife dont kick off!)
and connects to main pc in the man room
I watch movies / use the internet downstairs (controlled by a small Logitech Dinovo Mini (great these)
watch movies upstairs (stored on the server)
Jump in and control the server via Teamviewer (free) on my android (Galaxy SII)
Turn it on and off via this and WOL
store pictures on it.
Download NZB / torrent / or jump in remotely on the server and download ....
Stream to Phone to watch a movie in bed..... or use Airplay to stream to the Ipad (although thats died )
This is one of the best things Ive bought .... must admit would be lost without it now.
Hope this helps anybody deciding ..... I was going to get a Synology nas at the time but they were pricey for a 4 disk setup.....