qmail publicfile : need advice

Hi all,
	I have been asked by a high school to setup a mail and webserver for the 
school. Under this, I will have to provide 5Mb webspace and additional 5 Mb 
for emails for each of 3000 students. This work is totally a non-profit work 
and I also have to suggest the hardware. 
Since the budget is as always a major bottleneck I plan to use assembled PC 
intel  P-4, 512 Mb RAM, 2x20Gb SCSI hardrives and the works. I plan to use 
Mandrake/Red Hat Linux with kernel 2.4.x. 
	Also, since I guess these might be limiting factors, I won't push Apache 
c'os of some security issues. Instead I would prefer publicfile with qmail 
and djbdns. Though 3000 users are there, I guess 40-50% of them will make 
their webpages and only 10% of them will have hits. As regards email,  I 
guess all of them use it and say I will get outgoing SMTP traffic of around 
12,000 daily (average). 
	Do you guys recommend this setup. Am I right in not using apache? ( to be 
frank I want to use public files cos' I love Dan's softwares :) ) Also, this 
is a one time setup and the location is far off from my home, in a different 
state. I want the server to be up and trouble-free as long as possible.
	Do you suggest any changes in this? Is hardware and softwares OK?
Thanks a lot in advance and bye.
With regards.
-Payal