Win Web Hosting

You need to first ask if you intend to do this with X active or with a traditional safe non GUI server. Nearly all web servers are done without the X system running its simply is safer.

There are many good ways to go.
Personnally I like CentOS it is solid and secure and unless you want to use RedHat enterprise it is the close match.

You should also consider adding a control panel for your webserver like Zervex or WebMin in order to remotely access and control services, users, emails, etc.

What bandwidth is available for your system.. min. of T1 is needed to “host your own” the OUTBOUND speed being the first need because that is what will respond to your visitors.
You will need at least two IP’s for your server, one for the server and nameserver 1 and one for nameserver 2 (you can outsource the DNS but it is much better when you control it makes it easier to add additional domains.)

You do need a very complete understanding of SSH and its use as well as some solid knowledge of security monitoring and log review.

You also need to be aware of the LAWS concerning the storing of users data (if you are running a catalog!)

You will need a secure certificate and at least 128 bit SSL service running for https connections. Your Linux distro will need to support that service (most do).

You might want to get some good solid advice from someone who has this knowledge at least on a consult basis!

All that being said.. colocating or having a dedicated managed server is usually much safer for small to medium sized businesses than hosting your own! You get the benefit of a data center (with power and bandwidth backups, controled environment, 24×7 montioring, etc etc.) The cost is not that high when compared to rolling your own.