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/Peo, FreeWebSpace.net
What's cheaper: buying a normal computer
What's Better: Buying a computer specifically built to be a server.
You can't compare. However, if you are running a site that doesn't use to much system resources and doesn't recieve too many hits (less than 100,000 a month), you could use a normal computer. Even better if you ran it off a cable/dsl connection at your house.