Windows Server Getting Slow

Hello all,

I have a dell intel xeon 80gb hdd and 1mb ram running windows 2003 
server and i have installed mysql and configured it in the "dedicated 
server" mode. here is my problem

i have about 60 connections from the lan which connect to the database 
and run querries using storedprocs. when i get to about 30 connections 
the server becomes very *slow* and hangs and sometimes is totally 
unresponsive. needless to say the clients too become very slow

i kind of thought 30 or even up to 100 connections on a windows 2003 
server running [only] mysql should be able to handle such connections 
with ease, another symptom is the clients take longer and longer to 
connect to the mysql server.

i had to break the network into computers of 15 each and install several 
database servers to serve the clusters - since something needed to be 
done in a rush; i wouldnt want to deploy like this, it beats the purpose 
of what i want to do.

from the server administrator i see most of the connections in the state 
unauthenticated user with very few (about 4 or 5) connected to the database.

i must be doing something wrong; can anyone help me?

thanks

j

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