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Your old rig would be plenty good for use as a fileserver - store anything you want on it. You could use it as a Linux box if you want to play around and learn Linux. Linux boxes make excellent fileservers. You can even use a KVM switch so you only need one keyboard, mouse, and monitor for both machines.
You may want to start a thread in BYOPC to get ideas for a new build. With the Intel price reductions, you should be able to get a entry level Core 2 Duo on a 945 2.0 chipset board and an entry level video card within your budget.
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