This all happened two weeks before I started, so I don't know the exact details. If it was set up the way I think it was, I'd say yes, the DC was in it's own VM and then a separate VM would've been used as a NAS. Of course being hardware RAID the whole host server went down when that card failed.
They probably didn't have a second DC set up due to the DEFCON 5 levels of "We can't work!"
They were ultimately planning on going to the cloud anyway from what I heard and that catastrophe just accelerated that plan ahead
Looking up the specs of a D270, looks like the memory is upgradable.
It also looks like the Intel Atom N2600 it has (from my reading) is actually a 64-bit processor
I'd probably say you shouldn't have much trouble finding a bigger DDR3 memory stick for it for dirt cheap or free from an e-wasted notebook
Ultimately it depends if the performance loss you're finding is memory limited or CPU limited right now, but I would think that giving it 2 or 4GB + giving it 64-bit would go a long way