I recently helped my roommate shop for a small, personal web server. We wound up basing it on Intel’s Atom platform, and I was amazed at how cheap it was. The server (pictured above) came up to almost exactly $200, including shipping, and has a 1.6GHz Atom CPU, 512MB of Memory, and an 80GB hard drive. It runs Ubuntu 8.04 Server Edition.
The motherboard is a Mini-ITX form factor board, so the whole server is pretty small. It has a low power consumption, with the Atom CPU using only 4W of electricity. For anyone looking to host their own web page, the Atom is a great way to do it. So far, the box has handled everything we’ve thrown at it quite nicely. It’s running a LAMP server to host a few personal sites.
If you’re willing to spend a bit more (close to $300 for the same specs) you can get the server down even smaller by using a slimmer case and laptop components.
With the cost of hardware dropping, I wonder if we’ll see devices like this mass marketed to the general public. It’s mainly a matter of making a nice interface for it to easily allow setting up a photo or blog site. Imagine a desktop application that would allow a user to type up a blog post, upload photos, etc., then automatically upload that content to the server.
If anyone’s curious, the hardware we bought is here. The motherboard is currently out of stock, however, as Intel has released a dual core version. I’ll update the wishlist when Newegg gets the new board in.

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Nice little server you have there. How well does it run?
it ran well enough to run a basic web+file server, just don’t expect a ton of power
I am thinking about building a Atom d510 with 4gb of ram and a 1tb hard drive for my website. Are you guys by chance running a wordpress website on that server? I wonder how wordpress would run on a atom server?
it should be fine, if you’re just running a small personal site