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Pages load faster on pages that have fewer mysql queries? It seemed like that to me.
The 256mb of ram is really low for a server doing php and mysql queries on the fly. Your scripts might be able to be steamlined some so they are doing less queries to the database and possibly cache some of the information so it does not have to be built/queried every time.
You could try optimizing the mysql server and giving it more or less ram for its cache aswell and see how performance goes. If you have the ram double it to 512 and see how things run.
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