Hi Purpaboo,
I've just installed SME 7.4 on an Intel D945GCLF board, which has an Atom 230. The board works fine, but are a few minor points:
SME doesn't support the onboard LAN. ( A lot of Linux versions don't.... ). I disabled the LAN in the BIOS and added a 3Com PCI LAN-card.
I didn't have a 2,5" SATA harddisk at time of installation, I'm testing with a 3,5" PATA disk, so I'm not sure that SATA works with SME.
The 60 Watt PSU supplied with my case wasn't powerful enough to boot with a CD-ROM drive attached, I had to power the CD-ROM from the PSU in another PC. Once SME is installed of course the CD isn't needed anymore, so that's not a big issue either.
When you select a PSU, make sure it has a 12V 2x2 connector, this board needs it.
This Intel board isn't passively cooled, there's a fan on the Northbridge chip (not on the Atom!), but maybe that can be replaced by a passive cooler. That would keep it even quieter. I think you will need a small fan in your case, just to be safe.
I have the same desire as yourself, to have a small, quiet, energy efficient server for home use. Price for the components I used is about EURO 200, roughly $ 250,-.
Hope this helps,
Marcel