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You don't need to go with 2.1.1 to get local hard drive support. You just can't use the free space on system drive for storage in 3.1.1.
Either way... if 2.1.1 doesn't see your local drives.... Its doesn't make much difference either way.
The T3600 is really a workstation. Not that I haven't used workstations as server and Dell's workstations are work horses. I suggest you use VirtualBox on a windows platform. I don't see support for any Linux distribution for the T3600. You might try running OEL 6.3 or maybe OEL 5.7 or 5.8 with Virtual Box.
Either way. With Virtualbox you can run Oracle VM if you need to use it for some reason. If you don't.... then Virtualbox is a great product you can use by itself to do virtualization on your t3600.