Windows Home Server is, as it's name would indicate, is Microsoft's server operating system for home use. It's designed to be a basic server that Average Joe PC User can implement in his home for backup, file and print sharing, remote access, media streaming, and health monitoring of all connected PC's features.
You can purchase pre-built systems running Windows Home Server from the usual outfits like NewEgg, Amazon, or direct from HP. You can also purchase an OEM copy of the Operating System if you'd like to build your own. I personally like building them myself, but I don't begrudge a fellow who might want to forgo the hassle and just buy one ready to go. As a matter of fact, it's probably the smart way to proceed. Buying from HP would ensure that all your hardware is compatible and that you'll have all the drivers installed right out of the box.
Thoughts on Building Your Own
1. You'll want to have plenty of storage to backup all your computers. You need at least an 80 GB hard drive, but that won't be nearly enough for most people. You'll have to decide the amount of storage that will fit your needs.
2. You don't need to go crazy on the memory. Windows Home Sever will support up to 4 GB of memory, but it most cases, that's going to be a bit of overkill. 1GB will probably be fine for people who are mainly using it for file sharing and backup, but consider going with 2GB or more if you're planning on doing some media streaming.
3. Check to make sure there are WHS (Windows Home Server) drivers for the hardware you choose. If you happen to load Windows Home Server and find missing drivers, look for Windows Server 2003 drivers if you can find them. If not, use Windows XP. When I built my system, it was missing audio and ethernet drivers. Missing audio drivers? Not a huge deal. Missing ethernet drivers? Kinda important. Anyway, I loaded Windows XP drivers for both devices and they worked like a charm.
4. Dual Hard Drives. If you can swing it and they will fit your case, I highly recommend getting two hard drives for your server. Windows Home Server supports "folder duplication."
5. Windows Home Server doesn't support wireless. For a nano-second I thought about hiding my server in some out of the way place and connecting via wireless, but alas, no dice. Fortunately, my second choice was placing it about 3 feet from my router.
6. Doesn't Support USB 1.1. This could be an issue if you're thinking about using an older PC and "recommissioning it" as a server. If you ever want to add additional storage with a USB hard drive, this could be an issue.
Installation
Place the DVD in your optical drive, power on the computer and boot to the DVD. Windows Home Server will go through the process of loading files. If you have ever installed a version of Windows before, this will probably be somewhat familiar to you.

Setup will initialize...

The Welcome to Windows Home Server message is displayed. Click "Next" when you are ready to begin.

Select your region and click "Next."

Check to ensure all your drives are recognized by the Operating System.

If you need to load RAID drivers, you can do so by clicking the "Load drivers..." button and browse for your driver files.

Choose "New Installation" from the drop down options and click "Next."

Accept the license agreement and click "Next."

Enter your Product Key and click "Next."

Give your Home Server a name. It cannot have any spaces or be more than 15 characters.

Windows Home Server will warn that drives will be formatted and all data will be lost. Click the check box to acknowledge and click "Next."

You will be asked one more time to confirm. Click "Yes."

Now you are ready to begin the installation. Click "Start" to begin.

The Installation process will take just under an hour. Windows will reboot a few times during the install which is normal procedure.
Trial Version
Want to try before you buy? You can download a 30 day trial from Microsoft. Be forewarned though that after the trial, if you wish to purchase, you'll have to actually buy a copy and reinstall the software. Unfortunately they don't offer a way to activate the full version from the trial.
Buy it
If you're ready to buy, check out the current deal from Amazon:
Microsoft Windows Home Server OEM with URP1
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