Using Apple Xserve Xeon Nehalem 2.26 "Quad Core" as a regular computer? I don't know much about servers so I figured that this would be the best place to find out more about them. I have a friend who has 3 Apple Xserves with Xeon Nehalem 2.26 quad core processors. So my question is can this Xserve be configured to work just like a normal apple computer? My friend tells me that it can be set up just like any other computer. If this is possible is there some documentation out there that would explain how to do this?
Yes just attach a keyboard and display see Apple's Xserver user guide and it is a normal Apple computer. OS X server includes all of normal OS X.

However, it will need to be in a rack and I suspect is noisy and now not that powerful compared with current desktops (and possibly even laptops)