Setting up a dedicated gaming server! Need help.

Okay.. The ISP of my town hosts CS already and we are planning to add many more like DotA, Q3 servers etc,. The ISP head contacted me and told me if I had a configuration.. (The guy is a friend of mine).. Well the provide it free.. and it would obviously bring them more users.. That's the investment they are making..

Since it's the primary ISP and most people in the town use it, they wouldn't mind putting in 50k...
So here's my idea of the config..

Processor: Intel Core i7 860 Processor - 2.80ghz upto 3.46 with Intel Turbo Boost Technology - INR 16,500 approx
Motherboard: Intel® Desktop Board DP55SB - 9,000 INR approx
RAM: Transcend 4GB (2×2GB) DDR3 1333 MHz memory kit (for Intel Core i7 and Core i5 CPUs)- 7,500 INR approx
HDD: Seagate Barracuda 7200.11 1 TB SATA 32 MB - Approx 4k
GFX*: XFX Nvidia Geforce 8600GT 256MB DDR3 - 3.5k INR approx
Monitor**: -Excluded-

Total (approx): 40,500 INR

* : GFX was included as the motherboards which support Intel Core i7 do not have integrated graphics but work could be done if there was a spare PCI-e / PCI GFX card available.
**: Monitor wasn't considered as I think one must be available at their office.

What do you think about it? Any suggestions? What would be your idea of a config if you were to host a high end dedicated gaming server below 50k?

[NoasArcAngel]

Dude seriously fuk the i7 and get a quad core processor for server needs..

get this config :

Intel core 2 quad Q9400 - 10k
Gigabyte / Asus mobo G41 - 4.5k
gskill/knigston 8GB ram DDR2 800mhz - 10k
western digital 500Gb caviar blue x 2 - 8k
sapphire HD 4670 - 4.5k
corsair VX550 - 5k
NZXT LEXAS - 5k

total : 48k

alternate config :

amd phenom II x4 945 - 8.5k
MSI 785G mobo E-51 - 4.5k
Patriot Viper Series 3x2GB 1600Mhz - 9.5k
rest PSU case and GPU same

---------- Post added at 09:15 AM ---------- Previous post was at 09:13 AM ----------

@off topic what internet connection are they using ? ...... the config should be able to handle about 20 cs servers and 10 Dota servers at a time.... you can host upto 100 servers for Q3 arena

---------- Post added at 09:17 AM ---------- Previous post was at 09:15 AM ----------

most game server libraries specially the old one's like cs etc... are not more than dual core optimized so they will give you the best performance.... but you can now add special libraries which support 4 physical cores.... optionally if you want you can go for a high - end dual core cpu.... but a quad core is better