The most important thing for connection speed is upload. If you have cable with 512k bandwidth, you can probably get 60ish on before you start seeing major connection issues. My cable is 10MB down 1MB up and with it, I can hit in the 120 range pretty regularly. Though, anything over 100ish can start showing some sort of connection problems. Mainly just with new connections to the server. I still never see lag on my server. I think lag is mostly from hardware or maybe other things being ran over your internet connection.
And yes, if you can figure it out, Linux is the way to go. Though, Windows is a really good place to start and learn from.
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