While vBulletin is a lot more optimized than most of the other forums, no active board can run well on 32mb ram. MySQL relies particularly heavily on RAM, though I don't know if it will use more than flatfiles. If you possibly can I would recommend an upgrade to 64/128mb or more - then vB would be fine I expect.
I don't know the specifics so it may well run fine on your 32mb server - but it could certainly use more ram.
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