My latest child – Orange II
As I used to live in Bulgaria, I always had an own webserver at home. And now, after 5 years working on a local installed XAMPP on my Windows box or even worst – working on the fly on customer’s server, I got my own server again. Got the hardware from ebay.de :
Pentium 4 – 1 ghz, 128 + 256 RAM, 20 GB hdd SCSI + 2×500GB RAID (USB external storage) and etc.
The distribution is Ubuntu 8.04 Server Edition. I took me only about 4-5 hours to set everything – Apache, mySQL,php, Subversion. I can only recommend Ubuntu for small servers and other low-cost solutions 
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