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XOOPS is pretty slow many modules are poorly written and eat up a lot of datbase transactions... much more then needed. If this is goign to be a commercial application I suggest at some point in the future looking to get your own server and putting it in a colo.
All those companies that sell shared space over sell, and the servers are normally one P4 shared amount 50 - 500 accounts, each with website etc. You'll need SSH access to install, many places will not allow SSH. But here's my site we're still developing and its running on a dedicated P4 3.0 Ghz with hyperthreading and 1GB ram on a direct to the net 10MBS connection. Its really memory and CPU intensive.
http://www.sluse.com/
If your colo uses cPanel there's a way to get the CPU load and the memory load. CHeck it out. Also ask your colo how many accounts are shared on the server and what type of server is it... I'd hope its a dual P4 2.8 or better with 2GB ram
