NaveenChakravarthy,
Looking at the requirements, of a dual CPU motherboard, the CPU, ECC RAM, reasonable video card, the number of drives, and etc., it appears very difficult to achieve for $1,000- a good dual CPU motherboard would be $300 or $400- and that is with 3GB/s SATA, a single AMD Opteron 4-core 6308 series is $520, 16 GB RAM is $150, drives $400-600, then there the case, a video card, power supply, and so on. I think this specification is closer to a $2,000 computer new.
Because of the requirements to budget, I believe it might make better sense to buy a used computer that can be upgraded to a server function. For this, I'm thinking of a Dell Precision T5400 or T7400. These are very closely related to Dell Poweredge servers in that they have dual Xeon CPU boards, can use quite a bit of ECC RAM- 32GB for the T5400 and 192GB in the T7400, have both PCI-e and PCI-X slots, and quite large power supplies- 875W and 1000W. Here is a used T5400 with two 3.0GHz quad core Xeons >
http://www.ebay.com/itm/Dell-Precision-T5400-Workstation-2-x-XEON-5160-3-0GHz-2GB-80GB-DVD-ROM-Win-XPPro-/180775629089?pt=Desktop_PCs&hash=item2a17113121
> selling for $400. To put this into perspective, that computer new cost at least $4,000 as each Xeon alone would have cost about $1,200.
These have a very good onboard RAID controller but to further enhance the disk system, this series Precisions uses from the Poweredge servers two PCI-X 133MHz slots- a kind of bridge between PCI and PCI-e. LSI Logic made some very good server/workstation RAID controllers for the PCI-X slot that originally cost $400 but are now very reasonable. because the PCI-X slot is obsolete. I recently bought a used LSI SAS3080X for $15.- 8 port RAID controller that lists a PCI data burst transfer rate of 2.4GB/s but will - I hope- based on others' reports of these to improve my average/ read writes speed from about 130MB/s to about 300MB/s. We'll see. Along with the RAID controller, add a RAID configuration of 0 + 1 and the number and capacities of drives needed. Then, a reasonable video card like a GTX 650ti and some more RAM- DDR2 is unfortunately more expensive than DDR3 though- I think you would have a very reliable, and reasonably good performance server within your budget.
For 3D CAD and graphics application I use > Dell Precision T5400 $500 in 2010> 2X Xeon quad core X5460 @3.16GHz (2nd CPU/Heatsink +$80), 16GB RAM (+12GB for $140), Quadro FX 4800 (1.5GB) (Upgraded from Quadro FX 580, new $1,200, purchased for +$120 in 2012), WD RE4 500GB (+$80) / Segate Brcda 500GB drives, 875W power supply > Windows 7 Ultimate 64-bit (+$75) = total about $900
Just an idea for your consideration.
Cheers,
BambiBoom