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Hello,
Until recently, I had a Pentium III 550 Mhz running Windows 98 as my backup/media sharing/printserver/scanner machine. Just dropped in 384 MB Ram, 3 hard drives, and shared everything where appropriate. i can still use it to surf the net while it's acting as a fileserver.
For a home setup, you need very little in terms of hardware power. And, as people said, if it is a Linux box, you can use even less.
Good-luck
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