3. Run RAID for data security. That means at least 2 hard drives, I suggest a RAID 1 setup. If they can afford it, get two smaller, faster (10k RPM) hard drives in Raid 1 to load the OS and programs on, and then get 3+ of the 1TB drives to run in RAID 5 for the data files.
4. Onboard graphics are fine. Our SMB server (with 8 HDDs) has a 16MB onboard graphics controller. Works great.
They don't know what a server is, and I don't have a grasp either. So your help is much appreciated.
And I should have mentioned this:
They have a budget of 950 absolute max, and they don't really want to reach that max.
Also, the server is for a small water business with clothes washing places, and multiple water processing/filter sites. The server is meant to connect 3-4 different sites which will hit it whenever they need to access/store their data onto the central server. The server is mainly for accounting/logging purposes and not video editting.
Generally speaking, when you say "server" these days you mean "file server." It's not something that is used by someone sitting in front of it, but a box tucked away in a closet or a back room that is a central repository for data used by a number of workstations over a network.
Things that are important for a small business server such as you describe would be:
1. Reliable storage. Dependable long lasting drive(s). It sounds as if a single internal drive would work fine.
2. Back ups. Probably in this case a nightly back up to a simple external drive located in a different building is ideal.
Your server should not be used for running programs. It has a server operating system that allows multiple connections. It just serves files up for other computers.