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I guess that if you could post some specs of what falls into that category as far as hardware is concerned it would help. $300 can buy anything from just a single CPU to a complete system.
Go grab a Dell 1950 with 2 dual core Xeons, 8GB of RAM, and two 73GB SAS drives for under $200 shipped off eBay.
We grabbed one for a Vyatta router and it's been nice, the rails it came with weren't designed for our cabinet but a few screws locked 'em in place.
@vpsnodebox I don't want trash (aka power eating servers), and only rackable servers (1U, 2U max)
We're probably going to be doing some cPanel on this server, or Minecraft if I'm able to get a super deal.
@KuJoe That's a nice deal :P
Go onto a place like Newegg and get parts to build your own server. You can get a pretty good deal on the specific parts that you want.
Go with a L5420 it will beat any dc xeon crap, and at 50W a cpu it is cheap to buy and run.
@Jacob Stop dooley daddling, you're in school to learn!
Lunch break?
If you go with the L5420s, try to get one that uses ECC DDR2 rather than FB-DIMMs. The FB-DIMMs eat a lot of extra power.
I have a 1950 and can attest to its price to performance.