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[SLUG] Ideas for linux internet server hardware.

Hi Slugs,
I've been given a project to commission a Linux server for the web and am looking for the best hardware.

Software wise I'm thinking of Centos version 3.5 with possibly Xen for virtual machines, however I'm open to other ideas, eg. name based virtual hosting. Initially it will hold some static pages and some sites using WebGUI. Also some interactive video.
Hardware wise I was given the amount or around $4000.
I am looking at around 3Ghz server with SATA drives RAID 5.
It will be on a broadband connection.

Just wondering if there are any ideas out there about where to buy good "compatible with Linux" hardware. Possibly building a custom machine. Or how about 3 years warranty on a name brand server? HP? IBM?

What would you buy for $4000?