Basically, any version of Linux would be fine for it. All of the work done in the mud is going to be part of the mudlib so you don't usually have to have anything extra running like perl. Mandy and RedHat and are getting infamous for being bloated and resurce piggy, which is the leading cause of death from the lagmonster, but just don't run X after you have the Mud going and you shouldn't have many problems.
Cheers,
Finegan
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