on old celeron could handle that crapserver for storage as well as LAN game hosting and multimedia duties
Tlarkin, you prove some good points I was already aware of but I forgot to include in my original post that I want some extra horsepower for things such as rendering 3D animation, levels for certain games, perhaps video encoding but my PC is quite capable of that already and also some other demanding tasks.
As for the number of CPUs, if in those applications two noticeably cuts down the time compared with one then I'll go with two. Also in the end if they end up being slower than what I have now, then there is no point in getting them.
Oh and here is a silly question, would an old Compaq server with 8 700mhz Xeons and 8GB of RAM be able to handle anything like what I described?
Here is the problem with what you are trying to accomplish. Most OSes support dual processors and that is it, XP home and vista home basic only support 1 processor. If you want more support you have to run a server OS. I can tell you right now Maya, 3DSMAX, Softimage, etc will not run that well on a server OS. Unless you plan on running Linux, but then again I am not sure what kernel supports 8 processors...
If you want a kick ass rendering rig for Maya and the like, just go buy a Mac Pro desktop. They already come with Dual Xeons and have options to run Quadro cards, which are built for rendering. Building a dual Xeon system you will probably not save any money really since those aren't commonly built machines.
So it sounds like getting the right OS is the biggest problem here. I was thinking of installing XP Pro 64 bit edition on it since I would be fine with setting up server oriented software rather than a server OS anyways.
XP Pro only supports a max of 2 processors so the other processor would be a waste.
XP Pro only supports 2 CPU's? Looking in task manager I can have up to 32 CPU's apparently.