Have you thought about getting 2 servers ? One for the files, and one for the database.

I don't have much experience in servers for large forums, but I know a few clients that have their sites on many servers.

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I have everything optimized, as per the optimize post here for vb.

I was told about the dual SERVER idea (1 x web and 1 x DB)but was told I'm nowhere near that point yet so no reason for such an upgrade. Was told to upgrade / reinstall my app (vb) with the latest and new MODs installed.

In that case try adding couple of GB's of RAM and see if it helps, else cut down on the numbers of hacks you have and don't show who's online to guests.

Edit: Also I was talking about getting the server optimized not you vBulletin install. Here is is more info on it [Server Optimisation]: Required info for optimisation requests [January 15, 2007] - vBulletin Community Forum

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And I assume you've optimized the vb settings ?
http://forum.vbulletinsetup.com/f7/v...on-tips-2.html
Optimize vBulletin & Reduce Server Load

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I'd try taking a look on the vB.com forum's Server Optimisation section they have a few people who know a lot about optimising vB for your server. You could try memcached

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Thank you all for your help and information. I will try your suggestions.

I will still need to do a clean 3.6.8 install to make sure everything is virgin.