Howdy!
200GB drives, a 3Ware 12 drive controller (to support the 12 drives
you should use), and a case made for that setup.
Or go with 300Gb drives (they're reasonably priced, only
10-15% more expensive per gigabyte then the 200Mb
drives). 6x300 would get you up to 1.7Tb or so, you
could go 7x300 if you nix the hot spare (not
recommended).
That's not CHEAP - there's NO cheap way to get 2TB. There's just
expensive, more expensive, even more expensive, and "Sir, if you have to
ask, you can't afford it."
Rough estimate, probably $3 per gigabyte, including
operating system and server hardware costs. (Which is
basically, 3x the raw cost per gigabyte of the drives.)
Server hardware will run you around $2000, operating
system $800, drives 8x$275 or $2200. Total cost of
around $5000 for 1.7Tb of storage ($2.80/Gb).
Plus, you need to back that system up... tape will
probably run you $6000 for the drive, $100 per tape
(complete guess). Call it $9000 for planning estimates?
Backing up to single IDE platters in an external
firewire or SCSI RAID box could probably be done for
around $1.50/Gb ($2000 for the enclosure, $2200 for the
8 drives again).
.... and we're back above $4/Gb, when raw drive costs are
only $0.75-$0.95 per gigabyte right now. At least it's
still cheaper then SCSI RAID (by 5x-8x?).