Your server is very capable, and could even host the planet if necessary. It will easily handle a single country - with power left over for other analysis or development if necessary.

I would also recommend the TileDrawer if all you need is serving tiles. But if you want to do other things, the very long process of server setup may be worthwhile. For reference, an overview is at -

http://wiki.openstreetmap.org/wiki/Develop

Also, the following is a good reference; as you can see from the comments - the exact install procedure is very dependent on the OS and version of the OS that you will be using:

http://www.weait.com/content/build-your-own-openstreetmap-server