> I am looking for a rackmount server that'll do virtualization
> decently (2 Core2Duos, 16GB RAM, SATA/SAS drives) for <$1000.

Have you looked at, say, Dell?  I'm fond of their low-end 1U rack 
servers, which I trick out with additional components bought through 
third parties like NewEgg.  For example, Dell will upgrade your hard 
drive to a 1TB disk (which is actually a stock Western Digital) for 
something like $600.  But I can go to NewEgg and buy a 2TB drive for 
$100.  Hmm, tough call.  Same with RAM: I get 1GB standard and swap it 
for 4GB or 8GB Kingston sticks at a fraction of what Dell wants for the 
upgrade.

Pick one of their low-end rack-mount options, see what it has, and price 
out the pieces you'd want to upgrade.

[This assumes you're willing to crack open the case and get your hands 
dirty-- some people want everything built and delivered, no 
screwdrivers necessary.  In that case, this isn't going to be the path 
for you.]

HTH,
Jeff

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