Cheap system for Hyper-V VMs

I am looking to build a cheap computer that can handle multiple VMs for a test lab. I see Dell has the T110 for sale fairly cheap ($ 399)
http://configure.us.dell.com/dellstore/config.aspx?oc=bedwlr1&c=us&l=en&s=bsd&cs=04&model_id=poweredge-t110

Would this server with a 3440 processor upgrade and later maxing it out with 16gb ram and a couple more hard drives make a decent VM system? Or does anyone have a better idea? Looking to spend $800 or less as it will all be out of my pocket.
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  1. Hmm $399 for those specs seems painful so in the DIY route

    Items off Egg $222AR


    1055T + Gigabye 880GM-UD2H $225
    http://www.microcenter.com/specials/promotions/AMDbundlePROMO.html

    $447

    If u want to start OC clocks better than stock HSF:
    CM Hyper TX3 $18
    http://www.superbiiz.com/detail.php?name=FAN-RR910H&title=Cooler-Master-Hyper-TX3-RR-910-HTX3-GP-CPU-Fan-For-Intel-LGA1156-775-AMD-AM3-AM2-940-939-754
  2. Batchuka: remember, most people are NOT close to micro center.
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