The linux-server project wogri.at started out of pure interest (how does the internet work?) in fall 2001, inspired by Thomas Wana, who had the same project long before I started mine. First there used to be a linux from scratch as the basic plattform for wogri.at, which soon turned out no to be a wise idea. Updates were quite uncomfortable and installation of new software packages took forever. After half a year fiddling around with LFS I decided to switch to debian.
By getting more and more paranoid Thomas and I migrated to linux-vserver at some point. VServer is a kernel-patch that adds different security contexts to root-jails. This made it possible to have a dedicated webserver listening on one IP-Adress, separated from a mailserver and so on. This concept was alive for at least 3 years. In the mean time I switched to xen, a different virtualization approach with more effective separation of the virtual guests. XEN rocks, but it's documentation is not really great :)
Wogri.at runs with 6 Gigabytes of RAM, a RAID1 set of SCSI-Harddrives, two 3.4 Ghz XEON processors and a gigabit ethernet interface to the firewall.
Wogri.at is run on the linux operating system. xen adds virtual server contexts, apache serves your webrequest. There are much more services, which won't be mentioned here for security reasons. In case you are interested in my setup, go ahead and send me an e-mail!