[K12OSN] Hardware questions

[Joe Augsburger]

I've been reading the list now for about two months ago; barely able to spell Linux but a couple of months ago I 'borrowed' a Dell computer out of one of my school's labs and installed K12LTSP on it and have it on my mostly Novell network. We've run a couple of thin clients at surprising speed with just this poor workstation-turned-server. Enough to 'prove' the concept and I've been given----very rare, here----$3000 to put a real Linux server into service. 

My question, since I've only got one chance to buy a decent server...what do these specs sound like to you folks who are more knowlegeable?

>From DAKTech computers (one of my state's preferred providers)

dual Xeon 2.4 Ghz with 533 fsb
ultra 320 scsi (three, 36 gb Seagate drives)
2 gb RAM
Intel SRCZRU Dual RAID controller
Dual integrated Intel Pro 1000+

maybe add a fiber-optic NIC?

Will this serve 20-25 thin clients (mostly internet, word processing, etc) acceptably, and does anyone have experience with this type of RAID controller? I've read all the posts in the last two months or so and it seems that some difficulties exist with linux picking up some RAID controllers.

I appreciate any information you share.

Thanks,
Joe Augsburger
network admin
Douglas County SD#15
Days Creek, Oregon