Questions about Lag, Stability and Perfomance

[Polygon_Window]

Hello all

Im pretty new to EQEmu. I have now my server running under Win2k and till now, it works not bad at all. Got no problems till now, just some little bugs about zoning and some other little things that disappeared after some time
My question: I use my server and client on the same pc and i get "lag" in some way. When i cast a spell or attack something, it goes around 10 seconds until i see Damage-Texts and following. I use a 800Mhz, 1GB RAM, 128MB GC and 40GB HDD. Is it cause this machine is too slow for running server and client both?
I would be very thankful if you could help/tell me, what you think about...

PW