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If you are doing a server I wouldn't go with Fedora Core, currently support is dropped every six months so you are forced to upgrade. With Ubuntu 6.06 you get all the patches you need for 5 years.
I run the non-graphical ubuntu as server for almost a year now. I even did an apt-get dist-upgrade and its still running strong. Runs Trac, PHP, MySQL, and Apache. This is on system that is about 2/3 as powerfull as yours.
After all who would use Red Hat's testing/unstable release, espicially when there is CentOS (Red Hat Enterprise Linux for free).
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