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fan 0x17 represents Chassis Fan 1 Header on the board. You either have that fan disconnected or its faulty or the board is misprogrammed to monitor a fan that doesn't exist.
You will need to either replace the fan 1 or reupdate the SDR to program the board so that it won't monitor chassis fan 1.
Thanks for the suggestion ojconcentrate, but its a no go. Sys Fan 1 header was connected to the memory fan and I've tried 3 other fans on that header from another server with no problems or errors in SEL. Each fan still got the 0x17 Fan error in the SEL on this server. Tried updating the SDR two more times with still the same problem.
Unhooked the memory fan from Sys fan 1 header and ran SDR again and said no to the optional memory fan, rebooted and still got the 0x17 error.
So tried a fourth motherboard, this time I used fans from another working unit right from the start. green solid light until the SDR is updated, then it goes to solid amber, with Fan 0x17 error in the SEL. Only part I havn't changed (with a known good working part) is the chassis.