I haven't used my server for webhosting (yet), but I use SME Server on my rinky-dink machine. You can basically take any piece of crap machine and turn it into a server by installing *nix which is more reliable and requires less maintenance or installing Windows Server for all your virus vulnerability needs . But of course, the better the machine, the better the speed, uptime, ect. But, I've seen SME run on real pieces of crap and work well. It's non-graphical by the way.
-- Xero Grid --
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