256MB base ram (if you will use innodb like most modern vod scripts) + 130MB ram for each process of ffmpeg/mencoder that will run simultaneously. 512MB of xen/kvm will be enough, but if will want to go with openvz get around 700MB.
And of course final touch is you need "the more cpu the better" (get a minimum of 2 cores, 1 for transcoding 1 for website script) and VPS providers are limited on HDD and you need to know your transcoding setting as this will limit the number of videos that you will be able to host.
Port 50-100mbps is enough, but don't forget about peering, if you get some crap like cogentco visitors from the seas will not be able to play ~720p videos without buffering them.
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