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Set up a Debian box to remotely control my company's VHF marine band radio which is located 8 miles away on top of a mountain. For a grand total of $33 in parts, I'll take it, considering a standalone remote sells for about $600.
Setup an Asterisk VoIP Server from scratch (not a@h or trixbox) for our home office on a Hush Tech B1 (No Noise), c/w Digium TDM card, web interface, pstn termination (with a provider), a smokin' custom time based IVR, voice mail, fax handling, music on hold (random from my mp3 collection), and video conferencing.
Second coolest thing: Called home for free from a wifi hotspot while on another continent. :-)
Hmm let's see. First off, I'm a Unix administrator for a fair sized company and we make ALOT of use of linux systems. We have them deployed as workstations, I also manage a linux cluster which we use to run large jobs and simulations on. I have set up similar but much smaller clusters of these muscle machines at two other sites, one in Cupertino and one in Waltham, MA. We have a blade server using VMware ESX server on it, which for anyone not in the know is based on linux. We have many of our windows services running on it, including our domain controllers, nameservers, etc.
I run Fedora Core 5 on my workstation at work, which I've installed vmware server on and have a copy of winxp running in a virtual machine to which I rdesktop into and have it up constantly so that I can use outlook and our helpdesk software which relies on IE. I would try to get these things running under wine but my workload keeps me from dabbling in wine too much but I have gotten things such as winamp to run under it.
For home, I set up a 3ghz P4 box with 1gig of ram to function as my file server and whatever else I think of. I put in a 250 gig harddrive and moved all of my data onto it and made it accessible via samba to the windows machines on the network. I have it rsyncing to a second hard drive. My goal is to make the second harddrive swappable in a tray so that I can swap in a third drive and have at least of them in a fireproof safe but I havent gotten that far yet. The machine does not boot up into a graphical interface, but I have Amarok installed and configured to pump audio into my stereo system. I use ssh and Xming from my windows laptop and I can control amarok from anywhere in my house. This was relatively simple to set up but then again I've been dealing with linux for over 7 years so maybe I'm just jaded.