For simple file storage and administration, both machines are going to have plenty of horsepower, so the many other variables are going to be as/more important.
Do you need/have racks for the XServe?
If space is an issue, the rack-optimized nature of the XServe wins.
How much storage do you need?
The 4 internal bays on the XServe give you more storage than the two internal bays on the G5, but RAID options can affect this.
Where is the server going to sit?
If it’s close to users, the quiet nature of the G5 wins over the XServe. If in a separate server room this doesn’t matter.
What about A/C?
The XServes run hot. make sure there’s adequate ventilation around the XServe.
As you can see, there is no one right answer to your question.
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