Question : Problem: One TB on a $10K budget... recommendations please

Quick notes before the question: I've assigned 500 pts, but I have more points available to give.  If I get multiple authoritative replies, I will be sure to reward them. Also, I will be on vacation, so I won't consistently check this thread until Monday, July 17.

The situation:
I am the sole IT person for a large genetics lab.  We need file storage and backup. I estimate we'll need storage for 500GB per year, starting with a 1TB base.  We currently have no consistent backup or storage procedures: everyone keeps local copies on hard drives and backs up to CD on an individual basis.  

We have purchased a server cabinet with an APC SUA1500RM2U power supply.  The rest is empty and I have a $10K budget to fill it. Given that there is one IT person (me) to set up the hardware and maintain backups, this is what I'm looking for:

1) Some sort of storage hardware that can hold ~1TB and can be added to in the future
2) password protected and shared file system to access the files
3) a relatively painless yet sound backup system

Keep me from wasting our money, please. What I'm looking for in an answer to this question is a critique of my current direction (below) or an alternative suggestion that meets our needs within the budget. I have no experience in setting up a SAN or performing backups, but I'm willing to learn and I have considerable university support since I work at UNC.  Please concentrate on hardware, but if you can spare me some heartache with software/admin tips, that would be nice too.  There is nothing in place, so there are no constraints in terms of backwards compatibility or application continuity.  This is a ground up, best-of-current-technology opportunity.

The "straw man" configuration I'm leaning towards right now is:

HP ProLiant DL380 G3 $3500
Maxtor Maxline II Plus 250GB  x 6 $1200
Exabyte VXA-2 PacketLoader 1x10 1U $2200
10 80GB tapes $800

Total: ~ $8000 plus incidentials

For your further edification, I'll paste the other options below.  But if you can suggest something better (with corporate support in mind since I am one man) I'm listening.

Terabyte File Server      
*************************
Option one: Build our own
*************************      
Description: Purchase individual components from CDWg and build the file server      
ADVANTAGES:      
Absolute control of components, which should improve component quality, provide simpler in-house repairs,
and speed up repair time. If we build it, we know how it works and how to fix it.      
Less expensive.      
Easily upgradeable.      
Double capacity: 8 250 GB drives will provide us with 2 TB of storage, or 1 TB with full RAID, plus an
additional drive for the operating system.      
Double memory.      
DISADVANTAGES:      
Time to build server.      
Not a widely recommended strategy.      
No corporate support.      
Will need to learn best way to set up and configure the server.
Total       $2,819.50                                     
                                          
*********************************************************************
Option two: Network Attached Server (Snap Appliance Snap Server 4500)
*********************************************************************                                    
Description: A NAS is a standalone component that is designed specifically for storing workgroup files on a
network.  It is supposed to be plug-and-play and provide effortless storage of files.
http://www.cdwg.com/shop/products/default.asp?EDC=504897                                          
ADVANTAGES:                                          
Industry standard.                                          
Corporate support.      
Simplicity.      
Reliability.      
DISADVANTAGES:      
Cost.      
No control over components or design.      
Not upgradeable.      
Half the storage/RAID capacity.      

1TB, dual 10/100/1000BASE-T Gigabit Ethernet Network Attached Storage (NAS) rack-mountable server with 512B
RAM, Intel P4 2.4GHz processor, (4) 250GB hot-swappable hard drives, RAID 0, 1, 5 support, and PowerQuest

DataKeeper backup software       $4,476.81
Total       $4,476.81

***************************************************************
Option three: Purchase ready-made server (HP ProLiant DL380 G3)
***************************************************************      
Description: Purchase a server built by someone else (in this case HP) and add hard drives.
http://www.cdwg.com/shop/products/default.asp?EDC=476198      
ADVANTAGES:      
Better construction and reliability than one we build.      
Corporate support.      
Simplicity.      
DISADVANTAGES:      
Very expensive.      
No control over components.      
6 HDD vs 8 - fewer RAID options      
 
2.8GHz Intel Xeon processor, 1GB RAM, no hard drive, 24X Max CD-ROM, 2 x 10/100/1000 Ethernet, Smart Array
5i Plus Controller, Microsoft Windows 2000 Server + 5-user license       $3,511.15
Maxtor Maxline II Plus 250GB PATA x 6       $1,150.00
Total       $4,661.15
      
******************************
Option four: Aberdeen Stirling
******************************      
Description: http://www.aberdeeninc.com/abcatg/Stirling-S33.htm      
ADVANTAGES:      
See above            
DISADVANTAGES:      
See above, also smaller vendor.                                                            

Aberdeen Stirling S33 3U Server Rack
Intel Xeon 2.4 GHz 533FSB 512K Cache  
512MB Corsair PC2100 Reg ECC DDR SDRAM
8 x Seagate 160GB 8.5ms 7200rpm SATA/150 8MB
Plextor Black 48X/24X/48X ATAPI ReWriter                                    
Total       $5,911.00                                     
                                          
***************************************************
Option five: HP ProLiant ML370 G3 rack-mount server
***************************************************                                          
Description: http://www.cdwg.com/shop/products/default.asp?EDC=433366&ContractID=1476                        
                  
ADVANTAGES:                                          
See above                                          
DISADVANTAGES:                                          
See above                                          

2.8GHz Intel Xeon processor, 512MB RAM, no hard drive, 48X Max CD-ROM, 10/100/1000 Ethernet      $1,795.45                                     
Maxtor Maxline II Plus 250GB PATA x 6       $1,150.00
Total       $2,945.45
            
Tape Backup Drive
**********************************************      
Option one: Exabyte VXA-2 PacketLoader 1x10 1U
**********************************************      
Description: 10 slot tape backup drive
http://www.cdwg.com/shop/products/default.asp?EDC=549763&ContractID=1476      
ADVANTAGES:      
Best New Technololgy award winner 2004      
Less expensive.      
Packet technology saves tape wear.      
DISADVANTAGES:      
Not an industry standard.      
Expensive tapes.      
      
Components       Current price
800GB Native/uncompressed (1.6TB compressed) Ultra2 SCSI LVD rack-mount 10-slot, 1-drive tape autoloader      

$2,193.74
10 tapes      $797.90
Total      $2,991.64



Answer : Problem: One TB on a $10K budget... recommendations please

Don't know anything about the Aberdeen Sterling box but I know if you put a HP server or most of the other major players kit in that rack then you'll void warranty unless you take the front door off. Airflow is front to back on the servers so top fans are no use, the door must have 65% ventilation. when we rack Proliants at hosting centres we generally unplug the roof fans.

Snip-snip from Compaq quickspecs:-

CAUTION: If a third-party rack is used, observe the following additional requirements to ensure adequate airflow and to prevent damage to the equipment:

Front and rear doors: If your 42U server rack includes closing front and rear doors, you must allow 830 square inches (5,350 sq cm) of hole evenly distributed from top to bottom to permit adequate airflow (equivalent to the required 64 percent open area for ventilation).
Side: The clearance between the installed rack component and the side panels of the rack must be a minimum of 2.75 inches (7 cm).

CAUTION: Always use blanking panels to fill all remaining empty front panel U-spaces in the rack. This arrangement ensures proper airflow. Using a rack without blanking panels results in improper cooling that can lead to thermal damage.

-----------

How about a ML370 rather than the DL? A lot quieter and 8 hotswap SCSI bays if you add the extra hotswap bay in the removable media bay. There again I can't see a business that relies on its historical research data backing up to NAS, what happen if a virus erases everything on the network or the building burns down?
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