>>Absolutely with SQL Server on the same box. I originally recommended the fastest processor and most RAM you can afford...I guess that's my rule of thumb. I also prefer to not run IIS, SQL Server, and biz objects on the different boxes.
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>What's the advantage of running business objects on a different machine than IIS? Seems it would only incur the unnecessary overhead of DCOM...

Better scalability
Processor or memory limitations -- IIS is pretty resource intensive