Hi,
We're running a setup that is almost the same as yours. We've only got about 7-10 concurrent users, which does cause our system to get a little bit slow, but not noticeably. Have you tuned your JVM paramters for Tomcat?
We're running the following JVM options below right now, and the system has been running fairly smoothly. Basically we've got 2GB of RAM allocated to Alfresco/Tomcat, and another 2GB for everything else (e.g. Linux/Apache/MySQL/PHP).
-Xms512m -Xmx2048m -XX:MaxPermSize=256m -server
We're running a dual CPU 3.16GHz, 4GB RAM machine on RedHat 5.4.