Well, here's what I learnt from my experience.
CPU power = lol. Of all the time I've ran a server, I think it went to 3% once. To be fair, the most people I've ever recorded online at once was 32.. but still, 3% - and that was with them all spamming the hell out of... everything rly.
Ram is pretty much the same, I won't spend £400 on an MS Server again because.. well that's a lie I probably will, but if all it is doing is running your server executable and nothing else... anything newer than 3 years old is overkill, bigtime xD
Oh to answer your question - Those specs you posted initially will be fine. Random people here might speculate, but in reality an MS server does very little to a machines resources, if that is all it is doing.
Net speed however, that is where you will get your lags etc. I'm on 28mb broadband.. heh... but I've ran the server machine (which I ended up simultaneously using as a hardcore torrent box xD) with all its torrents and the Server application, counterstrike, my flatmate torrenting, and its been fine.. if you are on 2mb broadband and the server is all you are running (no online gaming etc at the same time) it'll be alright, otherwise should you start getting say 10+ people on at once, and you are playing counterstrike on another machine on the same connection, everyone will suffer.
oh wait 100-120 people?
Then no it won't. Dual core, and m0ar rams, like, 64 bit xp and 4 gigs worth. Ram is the one thing I could see getting eaten on my lil tests, every time someone joins, lil bit more ram got eaten - 512 won't be enough for 100 people, not near enough.
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