Max Virtual Hosts on a server

[badben]

I currently use a lycos VDS package with 256MB ram, 512kps bandwidth 2GB storage and 30GB monthly transfer.

This is probably a difficult question to answer but how many virtual hosts should I have before I upgrade?

I am planning to sell hosting plans with 2Gb transfer and 100Mb space meaning I could theoretically sell 12 hosting plans for this server as it is. (my setup uses about 650MB of space)

Would this strain the server or could I split them into smaller packages?

I am aiming for the cheaper side of the market.