Too bad mini server won't boot from an external drive

It won't. Enterprise TEch support confirmed this. I bought thew new mini server to get a good value fast machine with a quad i-7.
What's the purpose of Thuderbolt if my apps and doc folders have to reside on a SATA disk?
They really should have non server version with the i7 quad.
Even better Apple should make it clear that this is the case. Even the guy in the apple store said I coud boot it form an external drive!

Yes this will all take some time for sure.
If you want to keep lion server on your current machine, then yes, that is correct. It doesnt hurt to have a few spare 500gb+ hard drives to help the long process.
See there was previous controversy with the mac mini servers with the dual cores (the one I have) because we all wanted the better processors but to not run the server version and some also wanted to be able boot from other drives. Same as you..
In non lion versions of OSX you would normally put the SL Server DVD or SL DVD into your mac and instead of installing a fresh OS, you would select utilities , then restore from time machine backup. You could also obviously use an external drive or SD card with SL or SL server installer loaded on it to install the OS or perform the restore.
That being said
I personally only know how to use a Snow leopard Server or Regular snow leopard installer DVD (or disc imaged external hard drive partition as just mentioned) to use time machine to restore an OS. I personally dont have experience with the lion disc repair for using its utilities to restore from a backup. Im sure it works the same way though when you hold option and boot from it..
If you are looking to go NON server on your OS you must have a Snow leopard retail version DVD (not leopard upgrade version)  to be installed on to an external drive.
So what you would do is Set up a partitioned external hard drive and load it up with Snow leopard, upgrade it in app store to lion ($29 ) , then update it with software update, back it up to another partition using time machine, then boot from the install dvd (or disc imaged partitioned installer of SL) , go to utilities, and select restore from backup, when its asks wher eto install choose the external you want to boot from (must be partitioned using GUID partition table) and install. When you want to boot from that drive, hold option right after you power up your machine until it gives you the option of the drive you want to boot from, select it and boot.
Unfortunately like I said you will have to have a snow leopard retail installer (no longer at the apple store only online or ebay for $30) and then would have to 'upgrade' to lion in order to NOT have lion server version on a mac mini set up for server.
If lion server version is good for you then yes do what you wrote in the reply would work. My experience with server snow leopard was that it was slower than snow leopard regular and it extremely interfered with my music production even though I was not running any of its server options..
I hope this helps..

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