Question : Problem: Small form factor or large form factor. Is either a good choice?

Small form factor or large form factor. Is either a good choice? I'm looking for ultra reliability out of a new server purchase. I'm considering a HP ProLiant ML350 with eight 146GB SAS drives (Small form factor).

Also, I've spec out an Intel 5140 Dual-Core 2.33GHz processor to run the thing. It will be used primarily as a file and print server. Does this seem like enough fiepower or should I consider dual processors? We are a small company and need to economize where we can.

Thanks.

Answer : Problem: Small form factor or large form factor. Is either a good choice?

Your solution seems fine. As far as the choice between SFF and LFF drives, go for the SFF as you will fit more drives in the box, with lower power consumption and better reliability. It is the way to go for servers for sure. Make sure you have a SAS controller that supports your RAID levels thru hardware.
On the product choice side, there is a product you can check called All-in-One storage also from HP that includes hardware and software for the functions you pointed. It might be cheaper to get the whole package (includes OS, and utilities) and easier to get support later from one single vendor.