I need a hardware/software solution that will:-

1. Encrypt the database on the server so that a copy of it is of no use
to anyone. This is to cover if the server is stolen.


I have not used any strong DB security; but as others have pointed out,
someone with physical access to your serve can with time break any
encryption you apply. You need secure the server, at least in a locked room
in a building with some type of monitored alarm system. That way your random
thief would only get basic office equipment. Using Windows security; your
server hardware may be the only thing of value to an office equipment thief.
A more sophisticated thief may only take your backup media or better yet,
break-in though the internet.