Here is the server equipement I run at home: a Linksys NSLU2 (aka 'slug') with two USB memory sticks for applications and swap (128 MB) and data (2 GB). There is also a serial connector (eg. to be used as console) which I soldered on the board. The slug is de-underclocked of course. It serves several Mercurial repositories and this blog.
The router is an Asus WL-500gp which connects to my uplink (a PC Engines WRAP board running an ancient OpenBSD, BTW) and provides WLAN. Not shown: a Linksys WRT54G v2 connecting in bridge mode, and a Buffalo Linkstation HD-HLAN120 (for backup).
Both, the slug and wl500gp, run OpenWrt, a Linux distribution for embedded devices.