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My layman's opinion is that you could probably get by with a memory upgrade (and replace the fans, they are cheap). I think LMS has pretty small hardware requirements. Odds are the worst problem you will encounter is a real long time to rescan and rebuild your database when you add new music.BTW my experience has been LMS puts next to no strain on the computer-are you sure you need a special server for it versus just having it run in the background on your main computer (that's what I do)?
If you are going to run an ATOM Board, think about making a fanless server
The only thing that concerns me about a fanless computer is the extra heat killing hard drives.
I actually am selling a bunch of parts on other forums:AMD Phenom II 565 Black Edition Dual CoreBiostar A770E AM2+ Motherboard8 GB Corsair DDR2 RamRadeon X1650 Video CardAntec Earthwatt 80plus Certified 430w PSUall for under your budget.