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What annoys me is that they sell this package with the Webmin as an option when theres no real way its going to work with 64MB ram,
Webmin is quite different from Virtualmin in its resource requirements. But, Virtualmin (or Webmin) isn't really where most of the resources are being spent, regardless. Apache is big (depending on modules loaded)...usually much bigger than 64MB. Mail processing requires far more than 64MB. Any one of these services will fit in 64MB, but not all of them...Since Virtualmin is generally used for management of a full hosting stack, it requires a lot of paring down to make it run in a small footprint--it can do it, but the other applications have to be pared back a lot, as well. Without mail or large apps 128MB should be fine (as long as you follow the guide on reducing memory usage, and reduce down to just the services you really need).
It's easiest for us to just say, "get more memory", but a lot of folks don't really need more memory--they just need to adjust their usage down to meet the available memory. Running a single blog, or simple commerce, or whatever, site without email processing is entirely feasible in 128MB. But, as you've noted with 64MB "this town aint big enough for the two of us", where the two would be Virtualmin and just about any other service. The web server is already going to be bumping into that limit.
We do have some plans for a low-memory footprint version of Virtualmin, in the future. Our new VM2 product manages virtualized systems, and realistically, many VPS systems are small. People are shooting for a really low price point with them, and so we need to have some options in place for serving those users. But, it'll be a while...it requires several tweaks to the current model--we have to figure out what to do about mail, since it can't be processed locally on a small system, and we have to figure out the webserver problem...nginx or Lighttpd are possibilities, but they have serious limitations vs. Apache and remove a lot of cool Virtualmin functionality (Analytics, some of the proxy options, Subversion, DAV, etc.), and, of course, we have to build a new Webmin module for whichever webserver we choose, which is a very large endeavor.
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