External HDD or Network Server

I'm posting this here because it does fit into the category, and I really didn't know where else I should put it.
I currently have two LaCie 500GB external HDDs that I use for Time Machine and dumping digital video. I upgraded the HDD in my MacBook Pro to a 500GB HDD, so now I'm looking for something bigger in the external department. I had a friend that wants to buy the old drives from me because they support eSATA, so that will give me a return to put towards a new drive.
I was looking at G-TECH, and I think that's the route I want to go. Perhaps a 1.5 or 2TB drive should suffice for a long while.
Another option would maybe be a server. I currently have an old Gateway running under my desk as a simple web server. The specs are circa 2003, but it gets the job done. I was considering investing in something to act as a file and web server. I know I wouldn't be able to use Time Machine, but I would at least be able to back up the most important files or use something like SuperDuper.
I have an older desktop computer around here somewhere that has better specs than the Gateway: 2GHz AMD Athlon processor, 512MB of RAM and a 80GB HDD. It would be pretty cheap to upgrade the RAM and stick a couple large HDDs in the tower. Perhaps replace and add fans to keep it cooler and much more quiet.
Anyway, I guess I'm just looking for opinions and suggestions. Any comments will be appreciated. Thank you.

TM doesn't back up to network servers, or PCs.
From: http://support.apple.com/kb/HT1733
+Time Machine backs up to either an external disk (such as a USB 2.0 or FireWire-based third-party drive), a secondary internal disk or partition (if your computer supports additional internal drives), a Time Capsule, or an available Mac OS X Server version 10.5 volume.+
Your best bet, by far, is a directly-attached FireWire drive.

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