1 - Western Digital Caviar Black WD1002FAEX 1TB 7200 RPM 64MB Cache SATA 6.0Gb/s 3.5" Internal Hard Drive -Bare Drive
1 - ASUS P8Z68-V PRO LGA 1155 Intel Z68 HDMI SATA 6Gb/s USB 3.0 ATX Intel Motherboard with UEFI BIOS
1 - Seasonic SS-560KM Active PFC F3, 560W ATX12V V2.3/EPS 12V V2.91, 80Plus Gold Certified, Modular Power Supply
2 - G.SKILL Ripjaws X Series 8GB (2 x 4GB) 240-Pin DDR3 SDRAM DDR3 1600 (PC3 12800) Desktop Memory Model F3-12800CL8D-8GBXM (16GB total RAM)
1 - Corsair Carbide Series 500R Black Steel structure with molded ABS plastic accent pieces ATX Mid Tower Computer Case
I will later include an SDD for the Asus board smart caching. Possibly a second video card but the onboard is enough for now. I plan to get a SAN with iSCSI support to store the Virtual Machines (Maybe the Seagate Seagate BlackArmor NAS 440, 4TB (ST340005SHA10G-RK). Dual boot Server 2008 and Win7.
Looks like you are on the right track. I would second the i7-2600 (non K) and going with the Samsung F3 for a fast, cost effective solutions. Skip the SAN and go with additional drives as it will be cheaper and maybe more responsive in the VM setup. Just keep the hosting to two or three VMs per spindle to keep access times reasonable.