[i]Intel Quad-Core Xeon E5504 2.00 GHz, 4MB Cache, 4.8 GT/Sec, Socket LGA 1366[/i]
These are the base CPU and I would be looking at something considerably faster for a Long Term Server. But maybe that's just me. ;)
These Quad Core Xeon's are very reliable but even still 2 GIG is very slow and something like a [i]Intel Quad-Core Xeon E5520 2.26GHz, 8MB Cache, 5.86 GT/Sec, Socket LGA 1366[/i] isn't that much more expensive.
However you also need to consider the Amount of RAM that is needed here not what you think is wanted. If they are running Applications off this server I would fit as much as the M'Board will take and still use some reasonably fast CPUs as that is going to be a Limiting Factor.
Also as pointed out above you need to consider the Access Time to the HDD here so you need to look at what is possible to fit here and what will be needed. If there will be a Ton of CAD Files and this server is providing them when requested that means lots of very large files so you need Fast CPU's Lots of RAM and Very Fast HDD Access just for this one item.
The link provided above comparing SCSI to SATA Drives is a good starting point but you need to really look into what they want to use the server for. If they are planning on Hosting Applications on it and also use it as a File Server you need Fast CPUs lots of RAM and extremely fast HDD Access.
Of course here it also depends on how many users will be connecting to this unit. A reasonably sized Real Estate office here used a Small IBM Blade Server for this but they all are using Thin Clients so the Server is doing it all.
They however use 10 Quad Core Xeons with 60 GIG of RAM and SCSI Drives. There is very little Response Time to load Apps and find data with this unit but after being in place for 14 months they are looking at speeding it up some more to not spend as long to get stuff off the server. This is the advantage of these units they are expandable and you can add more CPU's RAM and whatever else you need. The down side is that you lease them from IBM and don't own them outright. ;)
Also what 64 Bit OS are you looking at using here?
Col