A little slow on this one, sorry! On Tuesday Apple updated the Xserve and Xserve RAID systems.
The 1U Xserve now supports 3 500GB drives maxing out at 1.5TB, pricing starts at $2999. The Xserve RAID also received an update which means it can now accept 500GB drives maxing out at 7TB per unit, pricing starts at $5999.