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There is article with some detailed power draw tests of the DN2800MT here:
http://www.linuxtech.net/reviews/intel_DN2800MT_cedarview_atom_power_draw.html
A server with 15-20 drives will never be low cost and low power and a 1000Watt PSU will never be low power either (unless your definition of low power and low cost is way different than mine...). What you are planning is a high end storage system (at least for home use).
I have 4 WD10EVCS (the 1TB version of the WD AV-GP) hard disks, that have been running 24/7 in a RAID5 for 18 months now with zero issues. Unlike the 1TB desktop WD GP drive, the AV drives never had that famous Load_Cycle_Count issue.
Also the AV drives come with 5 years warranty instead of 3 on...
Here is my links list straight from my bookmarks:
http://www.gigabyte.com.tw/Products/Motherboard/Default.aspx
http://www.asus.com/ProductGroup2.aspx?PG_ID=mKyCKlQ4oSEtSu5m
http://www.zotac.com/index.php?option=com_wrapper&view=wrapper&Itemid=100026&lang=un
http://www.asrock.com/mb/index.asp...
Fully agree, I plan to do just that with this case and one of the Pineview Atom mobos (to keep the power consumption down as it will be running 24/7).
There are a few Pineview Atom boards with 4-6 SATA connections on board, ideal for a Linux software RAID setup...
I have a Gigabyte MA770-UD3 and I love it, rock solid, all ports and expansion slots you could ever need and it supports ECC memory which I personally wouldn't do without.
I'm using it with an Athlon x2 4850e but it can take all the latest AM3 cpus too.
As for memory I opted for 2x 1GB...
Many people use Linux HTPCs succesfully, personally I have nevr had issues with 5.1 audio (over S/PDIF) it has always been plug-n-play in my experience.
I use Mandriva with XBMC (package is here) , in Mandriva 2010.0 Pulseaudio works great (that's coming from someone who has been a PA basher up...
The following article is very useful:
http://www.linuxtech.net/features/intel_atom_pineview_motherboards_overview.html
Personally I find the Zotac DTX board very interesting, I might get one (once it's available) to build a file server with it.
You could also still sell what's left of your laptop on ebay for spare parts.
Someone might buy it for the screen or the motherboard. That would reduce your costs even further.
The screws normally just squeeze themselves in-between the the heatsink fins, when you screw them in. Try it, it should work, it used to be the same with many 486 and Pentium heatsinks many years ago.
If you don't need hulu or other flash based stuff, then I would recommend an ION based system too, you might also consider the Acer Revo which is now also available in the US and Canada, see here for an overview.
HD files won't be an issue, even a PIII or an Atom can do it when using a GF 8 or 9 GPU. The only question is with regards to Hulu HD and similar Flash based services (until Adobe finally decides to support hardware decoding in the Flash plugin...).
1080p has roughly twice the amount of pixels as 720p, therefore to keep the same compression level, twice the bitrate is needed (assuming same frame rate).
Therefore a 1080p 10500 kbps movie is compressed with approximately the same quality as a 720p 5425 kbps movie.