I use Fedora Core 4 on my colocated server. It wasn't that difficult to setup and configure, it actually should be easier then most distros since it has a ton of packages included for you during installation even when only installing as a server (no GUI). As Soulwatcher mentioned, the life cycle is fairly short. With FC5 right around the corner I'm going to have to do something with my server in the next year.
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