I have a PIII 500 with 256 Meg. of ram and RunUO use all of it with only felucca setup and like 10 account for testing. I can play with 2 3 friend whit no lag. but remember that I have almost no item since its only for testing.
So my gess is you don't have enought Mem. The CPU will be ok if you plan on having only friend and family. (and you are not playing localy, on the same PC as the shard)
Forget any serious public shard on this PC.
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