Originally posted by SethEffectz he does not have the money for the hardware to colo it..
How long are you looking to keep the server? You're probably looking at $250/month or so for a machine with the specifications you provided; colocating a small server might run under $100/month. If you can spare the initial investment, it might work out cheaper. (Or it might not, depending on your needs, especially bandwidth-wise. I just think you should play with the numbers and make sure dedicated really does make the most sense.)
(And as far as the China topic goes... I knew it was "Chi / VA," but interpreted it as standing for "China or Virginia," which struck me an odd request. )