Home server hardware ideas

Hello all,
I am currently looking into building a home server to serve various needs. I want it to be able to do the following,
1 - store backups from my main computer
2 - store and stream media like music and videos
3 - have a virtualized router (most likely PFsense under virtual box)
4 - be able to handle RAID 1 (in software or hardware)
5 - remote manage the server via SSH
So I appreciate any hardware recommendations that will have low power drain, but still be able to keep up with these requirements. Also I'd like to be a bit mindful of some kind of budget.
I know that I will need two network cards for the virtual router.
I currently have a 500 watt ATX factor PSU sitting around from a desktop upgrade and some DDR2 Ram that I'd like to be able to use but that is not mandatory.
As an alternative to buying new hardware for this server, I am considering upgrading to the new AMD FX 8150, with a new mobo, when the second generation comes in a few months, and using my desktop CPU and Mobo for the server. Would my current cpu, an AMD Phenom II x4 get too hot without additional cooling beyond the included cooler?
Thank you in advance for any feedback.

Anders H wrote:@fukawi2: I'm leaning this direction; you mention KVM and Zen, how do they compare to virtual box in terms of usability. I like Virtual box because I can set it up quickly, Does KVM and/or Zen have good documentation that will help me get it up and running?
Virtual Box is certainly more user friendly, but it's worth the learning curve IMHO. KVM-QEMU is fairly easy to use with VirtManager.
Xen is the least user-friendly, but the most powerful IMHO. (My preferred option for server virtualization)

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