Beige G3s are pretty fun and, despite my love for the B&W, I find them to be far more reliable than the latter where, for example, one of the performance enhancements (the Ultra ATA controller) is eliminated due to a faulty controller chip and subsequent ATA mode reversion under OS X. I do really enjoy the B&W's processor activity LED, though. So cool.
My current beige G3 MT has an ATA DVD-RAM (yes, RAM, with the caddy-loading tray), 640MB internal SCSI MO, 40GB 7200RPM ATA HD, Voodoo3 3000, combo USB/FireWire PCI card, A/V personality card, Rev. B ROM, 640MB RAM, all on an 83MHz board run by a 292MHz G3. I have to run OS 9 because I couldn't seem to get the combo USB/FW card to run properly under 8.6. The only thing I'm missing is the Zip drive, because it isn't easy to find internal SCSI Zip drives just laying around (or indeed, at all anymore). The MO is more spacious and reliable anyway
I wouldn't bother with using a SCSI hard drive, really, unless you're doing some kind of disk-thrashing A/V work. With an internal Zip and optical drive you have only one spare drive bay available, so it's not like having the ability to install 14 more hard drives will do you any good; you're better off with SATA if you want a performance/capacity boost. If you're doing a file server (or anything on a network, really) you'll probably want to use one of your PCI slots for a decent Ethernet card anyway; the onboard 10bT sucks and I often have lots of collision errors with it on modern networks.