I whole-heatedly agree with Jim -your server is looking rather slim on RAM!
For your dedicated SQL Server move I would suggest lots of RAM (enough to fix all the hosted SQL databases in) and can you host it on 64bit hardware with 64bit Windows Server and SQL Server? This will give you the capability of native >4GB support and really fast SQL execution.
There are also lots of articles on the internet about optimising the SQL servers. In short, multiple CPUs for fast parallel query execution, lots of RAM to ensure that pages are retrieved from memory rather than disk (and further to store cached queries), and fast RAIDed disks to ensure data integrity and to keep disk queue lengths small (ensures that when data pages have to be loaded from disk that this occurs quickly)
For remote SQL access, I'd also advise (if possible) that the NS hardware and SQL server be in the same rack to reduce the chances of network glitches interferring with NS.
Kind Regards
Ian./