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Is it worth using old hardware for home lab use?

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Lets say power is not a concern and I can pick up a system with the following specs for about $350 USD. Is it worth it for running up to 6 VMs simultaneously and occassional bursts of heavy CPU and RAM use for days)? Should I go with something more modern with consumer specs that will fit my budget?

I guess I am just trying to understand what is better for virtualization:
- 2 slower quad cores vs. 1 faster quad core, and
- 24 Gb DDR2 ECC vs. less ram but DDR3 (ie. 8GB to 12GB)

Dell PowerEdge 2900 Tower Server:
2x physical Intel Xeon X5355 Quad Core 2.66Ghz processors with 8Mb L2 Cache (8 cores) including VT-X
24Gig DDR2 PC5300 ECC FB RAM
1Tb 7.2K Hard Drives (8 bays that will be upgraded short term in RAID 5 or 1+0 configuration)
Dell PERC 5i RAID Controller 256Mb Cache
2 X Gigabit Network and 2 X Redundant Power Supplies

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