1. No, you don't need a CD as long as you have the expansions installed.
2. Right now the emulator doesn't work, you'll have to wait till 5.0 is done. Developers are working on ironing out the bugs right now, so give it a few weeks.
3). All you need is the eqemu server to run a server.
4. Performance will be fine for that little amount of people. Only thing I would suggest is get another stick of ram.
5. The server currently defaults with 5 zones. They are in sleep mode until the server calls for them to load. You can change the amount of zones you can have running, but I wouldn't suggest going any higher than 5 with the machine you listed.
6. You can create custom items.
7. In original EQ, the stat cap was 255, 305+ wasn't introduced until AA points came into play. Dunno what the original defense cap was, but it can be raised.
8. You need MySQL, and you can download a pre-created database that should have most zones populated, along with items. Spells are already pre-created.
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