I am trying to follow The Perfect Server - Ubuntu Gutsy Gibbon (Ubuntu 7.10) but could not proceed because when I start to "Install to the hard disk" my system hangs and would no longer proceed. Please Help. Here is my hardware specs: Pentium III 866 MHz 512 RAM 40Gig HD
The Ubuntu Server version uses a special kernel that has problems on older CPUs. I guess that's the case with your system. You might want to try Debian Etch instead. It's very similar to Ubuntu (in fact Ubuntu is based on Debian), but more stable and better for older hardware.
is it possible to just install 7.04 then follow the HowTo instructions in upgrading from 7.04 to 7.10?