that arc-1220 is way too much money. You don't need to spend so much on a CPU, as the RAID card does all the storage calculations. So the only thing that the CPU really does is handle network traffic. Buy the cheapest cpu/mobo you can find that has gigabit ethernet. You most definitely do not need a 750W PSU. With 17 HDD's my server didn't pull more than 300W. You also don't even need a dedicated graphics card. You don't even need a monitor hooked up to it once you get the array setup. Just use VNC to remote in to it when you need to do any changes.
Now for the RAID card. Since your network will be the bottleneck no matter what you are using there is no point in spending a ton on a RAID card. IMO try to find a used Perc 5/i on ebay for ~$100. And as long as you buy an nvidia-based chipset (which I would definitely suggest when using a Perc 5/i), they are amazing cards for the money. You can use other boards, but be prepared to spend more time getting them to work. All of this will save you like $600 for zero performance drop. Enough for you to buy bigger HDDs
Also the Kingwin KF-4000-BK are nice, but I had a lot of problems w/ the connectors when using the 3ware SFF-8087 cables. They would never sit all that well on them. Although the person I sold them to has had zero issues w/ the PERC 5/i he is using them with.