Web Farm Setup

Look i haven't setup a web farm before but this is the way tha i would do it.

1) Setup each server as the a webserver
2) keep a local copy of the site on each server as you don't want network delay and site are usually not very big
3) setup a router (I recommend a cisco router) to perform NAT load balancing

If you want to how how to do it on a cisco router let me know
The cost of a cisco 2611 router of ebay is AUS$400

Hopefully this will help

If I were a customer I would not want my data on shared storage, and if you get any security minded businesses they won't either. Why not have a dedicated storage solution for each customer. This model
moves the cost of building the storage solution onto the customer, as they require it. I worked
for a large hosting company and thats exactly how we did it. It scales and is managable.

harbor235

As harbor has implied, need to understand more of your problem before suggesting a solution. A farm to host internet facing content for multiple customers with different security requirements is very different to a farm for a single client who needs a large amount of data to be constantly available on the intranet.

Cheers

Simon

If you are wanting to use Windows Server 2003 for your web servers, ensure you buy the Windows Server 2003 Web Edition...
http://www.microsoft.com/windowsserver2003/evaluation/features/compareeditions.mspx

You don't mention what kind of web farm you want however, for an E-commerce-type setup, follow Cisco's guidelines in the SAFE blueprint:
http://www.cisco.com/en/US/netsol/ns340/ns394/ns171/ns128/networking_solutions_white_paper09186a008009c8b6.shtml#wp42742

For any other type like just hosting web pages, you don't need the 3-tier (front end web servers, application servers, database back end) but some of Cisco's recommendations might still apply.  Follow the Corporate Internet Module in the SAFE blueprint:
http://www.cisco.com/en/US/netsol/ns340/ns394/ns171/ns128/networking_solutions_white_paper09186a008009c8b6.shtml#wp42592

I don't know about your storage question.  A SAN/NAS may be appropriate but I will let other experts give more suggestions.
Sounds like you have some work ahead...

I provided great documentation and blueprints on design for this question.