With this order i'll do one of these 3 things:
1) Install from zero your VPS with your chosen linux distribution.
2) Configure your Linux VPS to provide a web service, i know Apache, nginx, tomcat, mysql, postgresql just let me know which service you want to provide.
3) Optimize your VPS, i'll check your configuration and make them work with VPS (that usually have few RAM)
Or Buy 2 times this GIG to have all 3 the services.