12 Players on 389kbps?

Do you mean Kilo BITS or BYTES?
Sorry if my long windedness didn't come clear through the fog...
I say, Option 1, with upgrades as we go..
At the least, find a good deal on value brand or medium quality PC 3200 dual channel setup memory (does your server MB support dual channel?), and I might be able to lay into a good chunk of change towards purchase.
Or, like I said before...find a better barebones MB/memory/CPU for the existing case/powersupply you have for it now.
I know money doesn't grow on trees. But I just got a new job, Christmas is coming (Amen), and currently, I'm in a giving mood.
Here's my thoughts.
1) It doesn't need high end 0 CAS 0 latency memory. Its not a gaming rig..its a ded server.
(Heck, even my gaming rig has Corsair Value Select sticks in it, got two 1GB PC3200 sticks for $89 each on sale)
2) It doesn't need a video card (onboard crap is fine, its co-lo)
3) No sound necessary
If you go barebones, decent MB/CPU/memory deals can be found just about anywhere.
$200 or less if you go AMD 64 3800
Just my ideas. If you don't think we can round up enough for barebones, even with a donation from me, I fully understand.
Hmm. I'll look around at my boxes of parts. I
might have an AMD 2600+ somewhere around here.