Memory will be the real performance bottleneck on your VPS
plasticboy.com
plasticboy.com
However this post was particularly true for my case. I use OpenVZ and today I had to upgrade to a 1024MB server simply because memory was not enough to process requests.
Anyway this article is flawed about the number of MB each process uses because I think hes using PS to get the numbers and that shows shared libraries too. Shared, as in single code segment used by all the processes. Also he's making bad assumptions about the work load. Shit maybe I should blog.
If youre on a host that has half the cpu but 3 times the RAM then more processes are queued.
During a heavy load the larger RAM will mean more threads can be handled as there is space to store them in memory.
As you have a slower cpu it will take a bit longer, but you should fulfill more of the incoming requests.