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I have read this http://www.virtualmin.com/documentation/system/low-memory and optimized according to the example. Any more suggestions ? How do I stop mailman ? Is BIND DNS sever required ?
You can stop services you don't require in Webmin -> System -> Bootup and Shutdown.
It's difficult to answer "which services are required" -- as that all depends on what you intend on using your server for :-)
If you intend on hosting DNS on your server, then the BIND DNS would be required.
-Eric