An old post I wrote on a spoof MMORPG named "Outside" was Dugg not too long ago and I was quite pleased to find that my server and the blogging software (WordPress) that I use was handling the load extremely well. Quite obviously I was getting more hits in a day than entire months:
My setup is a Virtual Private Server (VPS) with 256MB RAM hosted at SliceHost and this blog is served off Nginx and PHP FastCGI processes to handle PHP scripts. The wonderful (because it just works and is really easy to setup) WP-Cache WordPress plugin keeps a cache of pages that's swept at logical times (i.e. whenever there are any updates or comments).
I may be a Rails/merb fanboy, but this awesome piece of blog software that can stand up to the Digg Effect with ease is great. WordPress