What benefit is there to multiple IP's?
 

I am going to co-locate my next server and some of the packages offer 8 or 16 IP's. What purpose is there to that?

Does splitting your traffic between two IP's help? Bandwidth? Peak? Does you need two NIC cards?

You don't need multiple NICs for many IPs.

If they're different C Classes, it means you can put 16 sites on those different IP's and then make your own little mini link farm.

Also may need ip dedicated for SSL. Depends how many sites you plan on hosting and what kind of interlinking you may have had in mind.

Good info.

So basically, one big site, doesn't need more than one ip correct?

i don't know... but the more the merrier has been my moto

If you only have one site and you do not need a security certificate, you don't need more than one. I would think the most basic package would give you two.