I dont care to get involved in the rest of this thread, but I wanted to post a factual piece of information.
PEQ runs gentoo with a 2.6 kernel, 2GB of ram, P4 3.2Ghz HT. It runs 112 zones (98 static, 15 dynamic) all the time... server load average is high with people on (can get over 100), but the machine has been up 282 days right now and things generally run reasonable.
Further, all zones, static and dynamic, effectively sleep when there are no people in them... so booting several hundred static zones with no people on will not likely load the CPU all that much... RAM is another story however. On that note, lots of spell casting NPCs are the biggest source of CPU load right now.
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