It was only a few months ago that I built my new $1000 desktop computer for work, which had an Intel quad core CPU 1333 FSB plus 8 GB RAM (4 x 2GB unbuffered DDR2).
Now it seems a quad core with 16GB RAM is possible, using AMD hardware, for a similar price:
Gigabyte GA-MA78G-DS3H AMD Mainboard x 1 ~ $100
AMD Phenom 9550 Quad Core (AM2) 2.2GHz x 1 ~ $200
Team Elite DDR2 8GB PC-6400/800 (2x4GB) Ram x 2 ~ $700
So $1000 for the bare bones.
A server on your desktop!
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