Is my server specification good for a database driven site

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http://serverfault.com – I have a dedicated server.its specifications are as follows Intel xeon processor 2GH x 2, 3GB Ram, 500 GB Hard disk drive. I am using SQL server 2008 r2 express as database The website is developed in Visual studio 2010. The server will also serve database to vb.net applications within the firewall. Is it enough. Since i'am using sql server express edition however it will only consume 1 GB of ram. But for other operations is it enough. I'am not expecting much traffic on my website. i am using windows server 2003 as OS on my server. Also should I upgrade to Windows server 2008. (HowTos)