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According to VMware ESX is roughly twice as efficient as VMware Server, with VMware Server providing 2-4 VMs per core to ESX's 4-8 VMs per core.
I was reading a doc on this last week but I can't seem to find it now, if I do I'll post it up for you.
As for your server, ESX should run just fine on a dual Xeon 4GB box, let alone a dual quad-core with 8GB, so I'm thinking you have a problem somewhere with your ESX install.