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I'd say, if you want support for a good-large sized server for all the latest games, a P4/2ghz or Athlon 2000+ would do you, buy whatever you can afford. I'd reccomend Linux for the OS, if its going to be a dedicated server, but as meese says, you could run it from any OS, even Windows 98 or something. The reason I say Linux is that its easy to strap on extra services, and should you want to remove something, its unlikely to break the system.
As to the internet connection, if you can get cable/broadband at like 1mb, you will be set for more than 20 players.
512-1024mb DDR should do you ok as well, if you go for Linux.
I'd reccomend a good motherboard more than much else though, as thats the bit linking everything together, and will be (besides the CPU, RAM and Network) a large factor in the performance.
One big question: How many servers (games) are you planning on running at once? I mean, a 32 player CS match will run on a PIII 1ghz or probably less. What are you expecting from the server?
If you only want one game at once, then you could get away with much less than running 5 independant servers on different ports.
Also, is the server going to be doing other stuff, like a website, FTP, fileserver? As these will affect your choice (software more than hardware though) in what to use.
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