Your processor should be fine, my server machine was a 1.1GHz Athlon and it handled the processing without problems. Your RAM is a bit too low, tho'. Definitely upgrade that to at least 512MB. The main reason you need so much memory is the server kit has to keep track of all of your players positions and actions in RAM until they can be written to the DB, which is also kept in RAM for easy access. The bigger the map and the more the players the quicker your RAM needs increase. Use a very large swap file also. I used to keep mine at least 750MB to 1GB. If you have enough RAM it won't be used often, but it's a good idea to have lot's of swap space just in case.