With that many potential users, the RAM may let you down. There is no point in skimping here as a less than adequate server is going to give a bad moodle experience to your users.
Be looking at least for a min. Pent4 3Ghz processor, and at least 2Gb RAM. The more you can afford, the better your box will standup.
In my limited experience, RAM is more important than processor (to a point, of course). So is fast SATA hardrives, as lots of writing/reading done with moodle.
If you can't afford a dedicated box, look for a virtual server that allocates a guaranteed minimum processor/RAM percentage. I can highly recommend the VPS servers from Atjeu Publishing from Pheonix, www.atjeu.com
Hardware and performance
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