You might confirm that Foundations has a valid upgrade path to 2012.  I quick glance at support.dell.com for Server 8 on the T110 seems to indicate that all needed drivers may be built into it - or it can simply use the installed 2008 R2 drivers.  Dell fully supports 2012 on the T110, so surprises and roadblocks should be at a minimum ... as far as the hardware goes.
Hi guys, Yeah, I know; it's been a long time.  Well I'm back for good.  I'm rather curious what people's experiences have been installing Windows server 2012 on a PowerEdge T110?  I'm fixing to do it, and I would like to see what I need to do before I put people reading the installation prompts to me (I'm blind) through something that's not going to work.  For me, it will currently be an upgrade installation because the T110 is already running 2008 R2 foundation edition.  I know that the current version of the System Build and Update Utility will not support this, so will I be able to perform the upgrade without it and have Windows server find it's own drivers?  Any feedback/experience stories would be more than appreciated. 
Has anyone had experience installing Windows Server 2012 on a PowerEdge T110