And Gizmo: I know that we only NEED 512-768MB of RAM, but more is better in two ways: 1) It's more - duh. 2) It reduces the number of VPS's on the box - thus the chances of contention go down just a little bit. I know this doesn't require THAT much processing power, but it doesn't hurt. With the extra RAM it allows us the potential to add Gallery or the like if we so desired.
Just wanted to reference your #2; I've seen (and had) dedicated servers with anything from 256mb dedicated ram to 32gb dedicated ram; so the fact that it has anything to do with how many users are shoved on the box can be misleading...
Not to mention, memory utilization isn't everything; theres also cpu usage and io timing... You'll notice that a lot of vps providers don't really state how many people they throw on a machine, what the scalable ram is, or how fast/type of processors are available...