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Squid Performance, VMware vs Physical Machine

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Getting ready to roll out a squid server in my organization after doing
about a month of testing on it on a virtual machine in VMware server.
Is running squid in a virtual environment recommended, or is having a
dedicated box a safer way to go?  I'll have about 30 users that hit
YouTube and other streaming media sites throughout the day and I am
hoping to cache a lot of it since many watch the same ones more than
once.  I do, however have a box set aside that I can use which is a P4 3
Ghz w/ 1GB ram and was going to drop in two 10,000 RPM drives for the
cache.  I know that the squid wiki says JBOD is preferable, however is
RAID 0 a bad way to go?

Jared


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