I have seen this issue with several xserves. 1 was due to a faulty NIC (so I thought, until I found out it was the riser board), and the other was bad ram, even though I tested the ram several times before, I finally was out of options and pulled it. No problems since.
Try a ram swap… and remove all the PCI cards save video. Then start replacing other things… I had to go through a logicboard replacement before I finally tried the ram that I swore was good.
P.S. can also cause these issues if there is a drop in the 3.3V or 5V line.
Good luck!
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