A nice distro to use for the server is CentOS. It's built upon Redhat Enterprise Linux so it provides a "Redhat" style distro while being stable and well-tested. A more "cutting-edge" distro such as Ubuntu or Fedora aren't stable enough for practical use as a server – too many updates being regularly pushed out.
Installation
The CentOS Guide has installation instructions.
Be sure to install Development Tools and NTP daemon.
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