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I currently have my web server and SQL Express / MySQL server on the same server. It is on a VPS. I have been having problems with my hosting so I am thinking of separating the web and db server into 2 VPS servers.

Does anyone recommend this? I am worried that changing my setup from a local DB server to a remote one will degrade performance heavily. They will not be on the same network, but will reference each other via an IP address. Anything I should be aware of?

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If ther VPS is maxing out it's processor resources then separating them may be a good idea. Genearlly if the DB servers have quite high load then separating them from the web frontend will improve performance. If the load on the DB is very low, then you've probably got other issues (like programming efficiency or similar things).

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It is maxing out and I am at a point where I should just increase the RAM, or separate the the web from the DB server. That's the decision I am having a hard time to make. –  TruMan1 Apr 1 '10 at 16:09
    
Separate out. Remember - what you do is toy level. WHen you get really large database levels, noone keeps database and app on the same server. So, this is made to scale. I wonder a little, though, that you max out CPU - databases are NORMALLY bound by IO limits, and VPS - especialyl budget one - normally are total suckers regarding IO capacity. –  TomTom Apr 1 '10 at 17:59
    
This is why I am thinking of putting my web server on Virtuozzo and my DB on Hyper-V. This way I get the best of both worlds while keeping costs way down. –  TruMan1 Apr 1 '10 at 18:05
    
The main point, regardless how you turn it, for the database will be IO limits. THis means DISCS. Plenty of discs if thigns get faster. Hyper-V allows disc pass through, but you still have to have the physical IO capabilities. –  TomTom Apr 3 '10 at 19:10
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Get a shared sql server account and/or shared mysql - you'll be happier unless you truly need control for some reason - Virtualizing databases doesn't work as well as many other things - generally file i/o is an issue even though it doesn't particularly show up in test results - http://www.bitshop.com/Blogs/tabid/95/EntryId/29/Can-I-virtualize-SQL-Server-Is-performance-good.aspx

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