That load looks fine, I wouldn't be worried. Is .5 load with all 8 people online? The thing with game servers is memory usage...just make sure you're not pegging out as that will not be good on the host side and also makes the gameplay no fun.
The load on the server is normally about zero haha...
It's a developer server. However I already shut the game server down because its against KH rules. Plus the memory was maxing out and I think that was causing some disruptions. I am surprised that with only 8 people on the server the game software would use up 256MB.
Anyway I am moving the game server to a dedicated server. Thanks for the info everyone.