Depends on how high you want to go.Ofc it won't fly with crysis-range textures and polycount.It does have a limit.
It wasn't made with with high expectations for the future you know.Even at its time, the graphics were considered quite low... as it required a 32Mb Video Card to run.
Like i said, depends on how high you want to go, how much you can put into the server, and even so, the limit would come pretty quick(My apologies, I red through your posts again, you seem to want to go pretty big).
At this moment, the FLServer software cannot use more than one core.That should be your primary concern.