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I used Ubuntu for my webserver, and I was quite pleased with the results.
All I had to do was pop in the installation CD for the non graphical Ubuntu. It did everything automatically, detected all my hardware, configured my network card. And of course, if you want customizability, it allows you to partition your hard disk and all that fancy jazz. I don't see why you would need to though.
After a quick hour's work, my webserver's page generation speed was sped up two fold, even though the processor was four times smaller than my original server. That's an 800 percent increase in performance by switching from XP to Ubuntu.
Good luck with whatever you decide to go with.
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