I built a server in January. I paid $100 CDN for 512 MB RAM. Today, I can get it for $50 CDN. Motherboards, hard drives and CDs are also cheaper. The 64 bit CPUs from AMD are coming down, too. Debian Sarge is down to 100 critical bugs, and I find it useable now.
Unfortunately, my employer hates computers and does not appreciate the 100 gB of static and dynamic stuff I serve in my department. When I arrived last year, there was not even a server. I took a stack of "obsolete" machines and some cat5 cable and made things happen. No good. I and my server will work elsewhere in the fall. I offered to leave the server behind for the next guy. No. My replacement was in town for a week and did not even look at it.