Start with a workstation that is able to handle 16GB of RAM. Most higher end boards can handle 16GB. The catch will be the cost of the RAM.
You could get away with:
Intel S3420GP (base board)
Intel Xeon X3430
16GB Kingston (4x 4GB) (can do 8GB 2x 4GB sticks too)
- Later on move to 8GB Hynix sticks to give you more RAM.
2 SATA drives RAID 0 (no redunancy but gives performance)
Intel PRO series dual gigabit (add in later when $$ available)
Decent 550Watt PSU
You can mount the MB on an old chassis cover (my first one went onto an old Compaq desktop case cover) using a tap & die set to bore the correct holes for the standoffs. A local PC builder will have bags of screws, standoffs, and the like for you to have or buy for a couple of dollars or a case of b**r.
By my reckoning, the above should meet your budget or therabouts.
Philip Elder