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Want to build "personal" server - budget $1000

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I have spent quite a bit of time catching up on mb and cpu after paying scant attention over the last 3 years. I want to build a server to demo Windows 2003 Small Business Server running SQL Server 2005 and Microsoft Dynamics CRM. Since there won't be more than 2-3 simultaneous users and it isn't a production server I'm thinking I might be best off speedwise building a Core 2 Duo 6400 machine rather than a 5000 or 5100 Xeon box and save some money also.

I'm thinking about using the Intel 975XBX with 2 Corsair Value 667 1GB DDR2 RAM, EVGA GeForce 6200 video card, LiteonDVD, and a pair of Seagate SATA 3G 7200 16MB Cache drives. Last would be a nice businesslike case with good airflow and a 550 Watt power supply. Does this make sense or might I be better off going with a 5000 series Xeon based system which will cost more like 1400 with just one cpu installed?

Thanks in advance for any comments

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