Well, I can't say for sure because I dont know exactly what kind of development you'll be doing, however I run a PII 400 with 512MB ram as my server in my basement. Its a fileshare, RRAS, Web Server, FTP Server, & VPN Server. The thing is a hog and runs through it all without any problems. Fast as hell, and I've never understood it, lol. I use it as my fileserver, etc without any problems. I do coding on my local workstation, php for example, then transfer it over and pop it on my web share so I can run it from my webserver.
I also run windows 2003 server on it, IIS, Mysql, & Apache.
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