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Windows 7/8 As Server On Current Hardware?

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Currently I have a Whs1 server running on an Atom D510 (Zotax NM10 DTX motherboard) with 2gb of memory. I use it as a file and mediaserver and for music streaming I have Subsonic and Squeezebox server installed on it. I hardly use the backup function of Whs. I sync data on my clients (two laptops and a HTPC) with local sync software.

Whs1 is no longer supported and a lot of new software doesn't run on it. I would like to use my server as a tv server but with Whs1 that is hardly possible. Therefore I am thinking about replacing Whs1. As I am not familiar with Linux and the MS has ditched the Home server concept I am opting for Windows 7 or 8.

My question: can my Atom D510 handle this? I understood Windows 8 doesn't use too much resources.

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