Using a server as "gaming" desktop, thoughts?

Greetings all

I have been thinking of building my own "gaming" desktop for a long time now, so I have finally decided to take the leap and do it but I have hit a fork in the road with two possible options:
1 - Build everything from scratch
2 - Buy a server with the basics to cut down hardware costs where necessary - this is currently winning as its my first desktop, I dont want to bite off more than I can chew

So to give you a run-down, the server I have seen is the Fujitsu Primergy TX100 S3:
Intel Xeon E3 - 1220 3.1gb/s, 8MB
8gb DDR3 memory with ECC support
2x 500GB HDD SATA 3Gb/s, 6 SATA connections in total
Fujitsu D3009 mainboard with further 2x PCIe 2.0 8x (one has a 16x port to be used for GPU), PCIe 2.0 4x and PCIe 2.0 1x
8x USB 2.0 ports, 2x RJ45 ports, 1x VGA port

Those are the basic bits that come as part of the system to which I will be adding:
XFX HD 6870 1GB 4200MHz GDDR5 and 900MHz GPU
Asus Xonar DGX 5.1 PCI-E 1.0 Sound Card
60GB Corsair Nova Series 2 2.5" SSD with R-280MB/s, W-250MB/s for the OS Win7 or Win8 if its out by the point I build this.

All this for under £700, does this sound like a good "gaming" desktop? I say "gaming" because its not the primary use, I want to be able to cruise through video editing and use applications like 3dsmax to render high quality videos as well as use other cpu intensive programs with adequate efficiency. What are your thoughts on the spec?
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  1. If you will be rendering with 3Ds Max, then I suggest you get an Nvidia card. Only because they support it better.

    GTX 560 Ti. Excellent gaming card, and works well with rendering.
  2. yeah nvidia is the way to go with 3ds max, and you can game on it, not like the xeon would slap you hard if you did game ^_^. so yeah it's not so bad but you can look at the gtx 550ti (it's not as good as the gtx560ti if your not getting this) but it does let you play games
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