I'm trying to get an idea on what kind of hardware is needed to host a website in-house. The website will be coded up in ASP.net and shouldn't do anything to computationally taxing (the most complicated tasks would conceive of querying databases). I don’t expect anymore then a thousand hits a day. I was wondering if a 1.6 ghz box with 512 MB of RAM, and windows web server 2003 would do the job.

My guess is that will be fine...1000 hits per day probably means fewer than 10 concurrent users - you don't need anything special. Particularly if you use ASP.NET's caching features, your site should be plenty responsive. In general, web servers are rarely the bottleneck - it's almost always either bandwidth or the database servers. Good luck, -SN