When Clumsy's World was in it's prime we ran 50'ish people on a 768kbps upstream and a busted ass single core Intel P4 compaq laptop.
Now I have no doubt the current CW specs could host 500 plus easily. But getting that number is another story.
95% of your hosting load is going to be upstream and RAM. The core processing and HDD speeds are basically irrelevant though I wouldn't skimp on them.
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