More ram is always better, but to a point it won't help much either. A lot of it will depend on your disks, IDE vs. SCSI? Or RAID vs. non-RAID? if you have other bottlenecks in your system the extra RAM over a gig won't be very noticable at all.
One great thing about RAM is you can start out small, and if you see you need more just add it in later. Could save you a lot of money.. also, I have noticed my boards on a server with 2 gigs of ram to now on a server with 1 gig of ram and its actually faster on the current machine due to the hard disks and partition structure. So evaluate your needs carefully before spending the money on something that may not really help in your situation