Decent hardware (< $1.500) for Hyper-V dev/test machine

I'm looking to build a decent < 1.500$ dedicated Hyper-V solution for development and testing purposes.

The parts list I was thinking of is:

• Intel Core I7 920 $288.99 (fastest affordable desktop proc. Hyper-V compat.)
• Asus P6T Deluxe V2 $289.99 (Confirmed Hyper-V compat. Confirmed 6 dimm working, 2x GigE)
• 12GB – 2x CORSAIR XMS3 6GB (3 x 2GB) $360 (On Mobo compatibility list, low heatsink profile)
• 5x Western Digital Caviar SE16 WD3200AAKS 320GB $249.95 (cheap single platter drive)
• Samsung WriteMaster SH-S223F $25
• Antec P183 $149.99 (quality case with lots of room to work)
• EnerMax Modu82+ 625W $200 (efficient and quiet)
• Scythe Orochi Rev. B SE1366 $59 (confirmed compat. with MB layout, very quiet)
• ASUS EAH4350 SILENT $37.99 (low energy, passive cooling)

Total: $1.660

Since the machine would sit close to where I work, noise levels will be an issue, though I could look into putting it in a separate room if significantly better use of the budget can be made by removing the silence requirement.

Would this be a good solution? Would I be better of going for 2 or even 3 cheap machines? If so, in what configuration (a dedicated iSCSI box perhaps?)?

Would going for a real dual Opteron/Xeon server type machine be better option?

(All prices are in USD, I used Newegg as a reference)

EDIT: I have updated the prices once more. It keeps getting more expensive :-(. While the configuration is a bit dated now (I don't have the time to spec out a new system), it is still a good build.

REMARK: Does anyone know how to get this moved to SuperUser? I think it belongs there.