In my experience, most Linux distros that have different versions to choose from simply offer different default package sets to install.
Also from experience, a desktop machine will perform just fine when serving out web apps and services as long as the hardware will support the load.
You should make sure that you have a nice firewall in place, and possibly a proxy server for Intrusion Detection-type services if the machine is going to be open to the "cloud", but beyond that, you should be just fine.
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