I want to use Poweredge R300 as Workstation, and I want the ability to use two monitors.
I don't know much about server hardware, so I am afraid I may buy the wrong one which doesn't fit. What should I be looking for in a graphics card?
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The specs say that the R300 only has two x8 PCIe slots, so you are not going to be able to use nearly every graphics card available, as they need a x16 slot. It's not a suitable server for graphics cards.
Matrox do make a graphics card which only needs a x1 slot, but as it only has one port, you would have to make sure that the onboard graphics do not get disabled when a graphics card is fitted, so that you can use both at the same time. I think it is unlikely that this would be possible.
Therefore, I would recommend you get a more suitable server. Most pedestal servers I have seen have at least one x16 slot, but this is not usually the case for low-end rackmount servers.
If you really do want a second monitor on that server, I think the only option available to you is the Matrox DualHead2Go.