If you are planning to have more than just 1 character, you will definitely want 1024MB of RAM. Unless there is a good reason not to, your best option would be to just run the server on your own home PC. As long as you have an ok upload speed (128k+), you should be able to get an ok number of players on it. If your upload bandwidth is 1MB or higher, you can get about 100 or so on the server.
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