If the one with the single 1 GHz CPU came that way, it should be a FireWire 800 model, which is technically not an MDD. If so, that's a factor to consider if you might want to use that feature or later resell the machine.
You can also replace the Single CPU with a Dual CPU. The Dual 867 CPU can usually be found on eBay for around $30, or a bit less if you're patient. \[Disclosure: I'm presently selling one there and will probably list another later.] Far better is the Dual 1 GHx CPU from the xserve line, which (unlike the MDD Dual 1 GHz CPU) has 2 MB L3 cache per CPU and is timed for a 133 MHz board, but it's a lot harder to find at a reasonable price, if at all!
You can also get a Dual 1.0, 1.25 or 1.42 GHz processor card, and either run it on the 133 MHz board without modifications, which will cut the processor speed by 20%, or you can do a simple, and reportedly safe, modification of the logic board to let it run at 167 MHz. (Search this forum for something like "logic board modification".) I've not done it myself yet, so I'm only going by what many others have written. But, if you run a Dual 1.25 or 1.42 MHz processor, you will need a better heatsink than the thick-fin aluminum one that comes with either of the machines you're talking about. The thin-fin aluminum one (it has around 35 equal-size fins, as opposed to the 26 fins of unequal sizes in the inferior one) should be adequate except for the Dual 1.42 GHx CPU, for which you should probably use the more expensive ($60 or so) copper heatsink or a custom fan setup.