I’m looking to set up a Counterparty node using a VPS - to do that I need a bitcoin node and counterpartyd?
Setup instructions are here: http://counterparty.io/docs/build-system/
Suggested h/w specs can be found here: http://counterparty.io/docs/build-system/federated-node/
If you want to get economical you could try in a local (VirtualBox, etc.) VM first to see how slow it is with 2 or 4 GB of RAM and then decide. But since most hosting companies allow resizing, that’s probably not necessary.