Storage server questionays

I have a few HDD's sitting around doing nothing (10.8gig, 2x 80 and a 160gig) and I want to separate them off my main rig (Seg - 7200.10 320gb) for music, movies and other important files. It would just make it a lot easier to have my data on another PC. I was lookin at a dual Pentium III server at a local pawn shop for 99$. Both cores running 800 MHz and 512mb of ram. I don’t really care about speed because it’s just for storage. My question is would this PC hold back any more potential speed or be a hindrance on performance if I watch movies or listen to music off these drives over a standard wired LAN line.

No.

As long as you stay away from HiDef content over LAN, that system on 100Mb with those drives spanned would be fine for a media streamer.