We're experiencing major performance issues with our main file server.

It's a DL360G5 (recently updated, problem existed before). Dual-core, 4GB ram, 1Gb NIC.

We see slow down when we have over 400 users logged on. It's usually a server with 3400 connections.

It's to a point where we the workstations freeze completly for some seconds. It used to be fine with around 2000 users, but I'm not sure what happen since.
Is it an application on the workstation or the server itself?

The server sees around 40K packets/sec - 16M/sec on average. I don't really see this as being high?

We have a mix of Win98, WinXP-sp1/sp2

I'm including a config.txt file.

When we try to transfer files or copy files (when the server is busy) we get around 1MB/sec (when the file is not in cache)
Other times we get 8-9MB/sec which is fine to me since we're switched at 100Mb.

Hope someone get see something in the config!