Main uses:
Fileserver - lots of space, 1TB preferable
Printserver
Game/TS server possibility - not 24x7 but able to run them temporarily
Web hosting - if using a static IP
Firewall and web server - other computers connect to the server to connect to the interweb
And as an added extra, DNS - I know what it is, but don't quite fully understand how to do it, but people have talked about including it on their servers
Hardware:
Single HDD's or RAID? IDE or SCSI?
Mobo - haven't a clue
CPU - haven't a clue
Basically as cheap as possible (between £500-1000). Not worried about case or other peripherals, just the internals. Been asked to spec something up, but am also interested myself, could be a good thing to get going as I want to do MCSA/MCSE in the near future, so actually doing some of it myself could really help.
Anything else I'd need to know?