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The Installation Guide has a section on Enterprise PDM Deployment Scenarios which has some suggestions.
We did well with both archive server and database server(SQL) running on the same server for many years. SQL eventually consumed all available RAM and we were running low on disk space. SQL uses about 5 Gb RAM and our vault is almost 500 Gb.
We chose to go to a multiple server setup. Server 2003 x64 with dual processors for the database server and Server 2003 x32 with dual processors and 3 Tb hard drives. It does work better, but they are 5 yrs newer than our single server setup.
If you go with a single server setup you can alway add another server later if you need to. It's easier to move the database server than archive server if you have a large vault.
Thanks for the info, sounds like we might be better off separating the Database and Archive servers before we get started. We have 55gb of SolidWorks files not counting old archived revisions. And this doesn't include other engineering files related to projects.....another 50gb at least.