I don't think you are going to have much luck with £500. Why not look on e-bay for an oldish server with dual Xeon's and spend a few quid on RAM if its only for VM testing ?
if you arelooking for anything higher end than that, best start saving a few more pennies. How many virtual machines will you be running, and what exactly will these virtual machines be doing ? 12 gig RAM is more than enough for 15 virtual machines to use
Another idea to run your Virtual machine would be to run some form of Linux. Linux has a much better processing power than Windows, thus bringing down the amount of RAM you would need
You can get a Sandybridge CPU, decent socket 1155 motherboard and 16Gb memory for a monkey but up the memory to 32Gb and that's not enough money for anything decent.
I honestly don't think any current day software requirements in a domestic enviroment would benefit from 32Gb RAM.
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