Just a "funny thought" because I don't know what it can be used for .. But I think it should be possible to run the server part of it as well, from RAM disc.
All your datas (exept for those permanently stored on the CD) will go lost when you reboot.
Don't know what a "rambased server" can be used for, possibly for some testing purposes, but I guess it could be done.
For a while a go there were developed a "special edition" of Knoppix with the Moodle educational program on it.
http://moodle.org/ This distro worked rather ok with moodle running on Apache server, PHP and Mysql from the ram disk.
One should belive that this priciple could be expanded to inklude a complete sme server.
The thought about is is somwhat "strange and funny", what about something like a "live primary domain controller".
For experiments or for educational purposes this might be usable for something.. don't know.
If someone got the time and interest for this, it would be interesting to try something like a "live server only".
Have not tried this either, but it might be usable:
http://www.linux-live.org/Best reg Arne.