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CPU is necessary if you are running CGI scripts, PHP, or MySQL queries as all of those things require CPU usage, the more queries or hits to any of the above, the more CPU power you will need to keep the server from slowing down and slowing down regular HTML page load times.
RAM is necessary to make sure you can load up as many instances of Apache as you need. The more traffic you push, the more apaches you have running, the more ram you will be using as each copy occupies some space in RAM. If you run out of RAM you start using SWAP, but heavy usage of swap will again slow down your server.
Depending on usage and configuration you can make do with 1Gig of RAM for 50Mbps of traffic, but again it depends on implementation.
If you have any more questions hit me up on icq at 36837470.
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Take Luck!
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