building a new server

hi
i ve got some questions for you vets out therebuilding a new server I"ve decided to
build my own server, Its going to be co-located and was hoping
to fit it in a 1u case *much cheaper*. Heres were the questions
come in, I have been building PC's for years now so building it is
not a problem, but do i have to use server boards? *think i now the anwser to this*building a new server would be so much cheaper to use reg motherboardsbuilding a new server other wise i found a deal on a barebone

TYAN Transport GS10 Sub-1U Black Rack-Mountable Barebone Server with Tomcat S2094 Motherboard, Model "B2094T15" -

Specifications:
Form Factor: ATX
Color: Black
Processor: Supports Intel P4 processor up to 3.06GHz (533/400 FSB)
Chipset: Intel 845E MCH + ICH-4
RAM: 2x DDR DIMM slots up to 2GB unbuffered DDR 266/200
IDE: 2x IDE ports and 2x RAID ports for support up to two IDE drives
Rear Ports: 1x 9-pin UART Serial, 1x VGA, 2x LAN, 2x USB 2.0
Power Supply: ATX12V 250W with PFC
Dimensions (W x D x H): 16.7 x 15.3 x 1.7 in.
Weight: 15.43 lbs

for 420.00 usd wich looks good after looking up prices on parts for servers. The box will be used mostly for web hosting and i was gunna stick a p2.4 chip on it with 1GB of ram and i dont know if i can fit 2 hdd's in it if so i was gunna go with 2 WD 120gb
or 80GB drives. also how big of a factor will heat be?? and im pretty new to linux so wich distro should i go with?? and 1 more
question how important is ECC & non-ECC memory in a server or dose it even mater? thanks for reading this long postbuilding a new server but any feedback or any pointers would help this newbie out alot.

BTW - the colocation for the 1u rack comes with 1500GB xfer amonth is that enough

 

 

 

 

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