SQL Server configuration / specification recommendations and advice! I am about to deploy a new server at work as follows:
Dell T610
2 x Xeon 2.53 Quad core
24 GB RAM
1 x Perc H700 RAID controller with 1GB Non Volatile memory
8 x 300GB 15k SAS Hard drives

I am looking for recommendations of how to best configure this for use as a SQL server.
I have the following in mind:

Option 1
Allocate a 4GB RAM drive for TempDB
Group all 8 drives into large RAID 10 array for OS, Database and Log files

Option 2
Allocate 4GB RAM drive for TempDB
Use some mixture of RAID arrays (but only have one controller)!

Option 3
Any other suggestions!

For info, the databases in question consist: 1 x 4GB under heavy Read and Write use, 1 x 4GB clone for testing purposes, 2/3 other more minor databases.
What I'd do


4 disks for RAID 10 for all log files
Disk RAID 5 for all data files + OS
Don't bother with RAM disks


Why?:


With 24GB RAM all databases will be in memory so RAID 5 doesn't matter because disk reads won't really happen
Write performance is determined by log file throughput
Data files are larger then log files so RAID 5 is more efficient


What isn't ideal:


Not having one volume per database log file
Separation of local backup drives
Not having separate RAID 1 for OS + binaries


Other options:


Define "heavy write": you could go to RAID 1 for LDFs and another for OS for less than a few million rows per day