How to create a server?

First of all, thank you for taking the time to read this. So, I have a Dell Dimension 8300 and a Gateway MFATXPNT ESX 500S P04 just sitting around. Lately I have been thinking about trying to make one of them into a server. I have a couple of hard drives (about 20 GB or so, IDE), some extra RAM, and a extra wireless network card (don't know what kinda, just came stock with my Gateway DX4300) just laying around. So, I have a couple of questions about servers.

1) Can I make a server out of a old desktop?
2) What are the requirements for a server?
3) Will having more hard drive space or RAM be able to make your internet connection faster?
4) How do you make a server?
5) Any good and easy-to-understand tutorials?
6) What does it mean to "encrypt" the packet's (I think that's the question I want to ask)?
7) Will it work for a dial-up set up? (I think the limit is 3Mbps) (I know, "Dial-up, what's that?" and "3Mbps, why so slow!?!" but it's a lack of income! Lol.)
8) Can I turn it into a private proxy server?

I know I have more questions and I know its a lot, but Thanks for you help!

It's best to have a server wired (cable to router)
1) yes you can
2) pretty low. RAM will be the most helpful thing as then it can provide stuff faster. If you want it to be a media server, then you will want a bigger HDD, but of just a normal website or something, 20GB will be fine.
3) afraid not. The speed you get is the speed your ISP is giving you.
4) the easiest free method is using Linux. Just download the ubuntu Linux server version iso, burn to a disc and install. It's a text based installation, so I'm afraid you will probably want to look for a tutorial, afraid I don't know much about the actual installation.
5) just found this, looks fairly easy to follow: How to Setup a Dedicated Web Server for Free | Nettuts+
6) packets are the 'packets' of data, so I guess it just means the data flow is encrypted
7) should do
8) possibly. I know some businesses that do, but maybe they have a special deal with an ISP or something. Setting up a proxy server will probably be more difficult than just a server.
Good luck :)

Right, yes, I think (as you said) you'll want to create your own proxy server or a VPN. I'll look into it further for you :)
You could try Tor, but I don't think that would provide the learning experience you want :/

DragonPoet said:

Why thank you. I do look forward to hearing about what you come up with!

don't worry, i haven't forgotten about it
(it's just taking me a while to combine and understand info)