Yep, allow at least 256Mb of RAM for the server plus 32-64Mb of RAM per user (recommend 1Gb RAm total).
Use separate disks for Win2k, swap, apps and data on a fast SCSI array (or arrays). Do not use IDE...too slow...allocate 2 x RAM for a swap file on its own partition.
Go for a FAST processor (recommend 2 x 866Mhz minimum) and make sure that you have access to a switched Ethernet at 100Mbit/s using a "quality" (name brand) network card.
Do not make the machine a DC and you should be flying.
This same configuration supports 100 users at one of my sites and users are blown away by the performance improvement...for the first day and then they forgot how slow their old system was!