I Use the shops beast of a server tower,
1 gig of ram,
dual amd 2800's
windows server edition 2003
fujitsu SCSI HD's (147g x 4)(10,000rpm yay)
I run the dedicated server off that, I also have 2 massive gig switches which the players plug there comps into via ethernet, and they all connect to the game on the dedicated server, no internet required, and no lagg
BTW gig switch= cat 6 ethernet switch.