Setting Up A Server

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1) What specs are the laptop (speed, memory)? What all is on the laptop (windows? lots of apps? or few apps?)

2) Windows will work fine. Performance will depend on hardware specs. Linux is better for setting up web servers, IMHO, but harder for beginners to setup/admin.

3) If you find one, let me know. I was looking for one a few years ago, and never found any free ones that came close to anything I wanted. So I don't have anything, ATM.

Some things to consider.
1.) The most important consideration is your connection to the Internet. If your connection is down, your site is down. Also you will need to check with your ISP to see if they allow you to have a webserver using your connection. Most don't but don't really do much unless you are consuming a lot of bandwidth.
2.) The computer/server is the second greatest consideration. It needs to be up all the time and should be used for a server and really nothing else. Again consider that if the computer is down/off then people won't be able to access the site.
3.) The Operating System is the next consideration. Unless you get a cracked copy of Windows Server which is not legal, then you will either have to spend some $ on Windows Server or go the Linux/BSD route. XP can work but is not made for this and has a 10 connected user limit.
4.) Security is also a consideration. There are a ton of people out there that really don't know what they are doing running webservers on their home computers. They are frequently used by spammers and their ilk as zombie machines to do their bidding.

So really the best thing is to learn what you are doing a little bit before you open yourself up to the world. You can have working websites on your local computer without having them open to the world. I would suggest this method until you learn a little bit about what you are doing.

Well the laptop is about 3 years old, 700mhz, 20gig space, and 128mb ram...

As far as connection to the internet it's cable, but through a wireless hub...

The other computer I want to use has slightly better stats in some areas, and will have a direct connection to the hub, but I would like to get everything up and running on this computer first so I get an idea of how it's done

Something else to consider... My ISP blocks port 80 (http) and 25 (smtp). I have to use a redirection service to point my domains to my IP on a different port.

But what softwares and such would you suggest? and is running them on windows 2000/95/xp ok?

For web servers, I'm an Apache fan.
For FTP, I use SSH.
For databases, I use MySQL.

I'm not currently running a mail server. ('cause my ISP is blocking that port )

What isps allow mail servers?

Oh, I don't know. You'd have to ask the ISPs in your area.

My ISP (Cox Communications) used to not block any ports. But when "that" one worm/virus came out that attacked web servers a couple years ago, they blocked ports 80 and 25 "In an effort to control the spread of the virus."

IMO, "not!" They just want to limit network traffic. And if you do want you ports unblocked -- why, you can upgrade to Package XYZ for just an extra $$$$ per month. It would be cheaper for me to rent a dedicated server elsewhere than to host one in my home with unblocked ports. That's capitolism for ya. Never you mind that those viruses are near dead, and the holes patched. They're "Still concerned for their customer's saftey."

Ya, whatever. That's why I have hardware/software protection between me and the internet -- as should every other person on broadband. I don't see it the ISP's job to "cleans" the traffic coming to me. Why should I pay more for them to not do this?

yea, hopefully i won't get any blocked ones, how can I tell?

Uh.. I think I found out in an email. Then, stuff stopped working. And every now and then I call to see if this or that package has the ports blocked. They say yes and I say no thanks.

So, if your considering an ISP and are concerned about blocked ports, try calling Tech Support. I wouldn't suggest telling them why you want the ports open. Don't lie. You're just "curious".

Is there any presetup package that is easier to configure mark? And is it one that other people will be able to see instead of just a server like xampp?

I'm not sure what your asking. What do you mean by "presetup package"? A "package" from the ISP? Or a web server software "package"?

apache2triad is what i ended up getting, but I don't think it will end up being used for anything more than testing