I am wanting to start a hosting company, and I have a question.

I currently have a server with:

700Mhz Processor
128MB RAM

But it is connected by a T1 line, and there are about 20 servers on the line total.

Is this server going to be enough to get me started, say for my first 50 clients, then I can change to something better.

Do you think this would work?
What are your thaughts?

Well, with 20 servers on a T1 you are pushing it a bit. It would be a bit more helpful if we knew the server loads on the 20. But, I would be cautious.