I notice it has two ethernet ports, which is good from the POV of the core. However, it may lack grunt if you want lots of MDs with only 1 gig of RAM.
From the POV of using it as an MD, might be just the job, but don't be surprised if it will only run UI1. Also need to make sure it is capable of PXE boot (there should be an option for enabling/disabling this in your BIOS, if the hardware does not support it however, you can burn a "PXE CD" or "PXE floppy" to do the job, http://www.rom-o-matic.net/
I also noticed that the spec mentions AGP, can you not upgrade it with an old AGP nVidia card then?