Can I use core i7 processor for hosting 5-6 web sites ?
If yes then what other configuration is required?
If No then, which processor is best and cheapest to host 5 to 6 web sites and with what configuration ?
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I'm going to assume low traffic volume, given the question.
for 5 - 6 sites. I would do something over 600Mhz and 512MB of ram. Anything over 1Ghz and 1GB would be enough to get you going. The reason I'm giving you Mhz and MB instead of a processor is I'm assuming your are looking at hosting servers provided by a hosting company.
Sites like VPS.Net, rackspace cloud, and (mt) all sell based on the speed of the machine, and less on the type of processor.