I'm currently using Linux on a dedi for game servers, such as team fortress and it's runs great. I don't know anything about the performance increase, but i'd say you would get a performance increase if you are running without the user interface. Which I believe mostly everyone do on Linux servers. The only problem that annoys me about running on Linux is games such as natural selection 2 still do not have a linux server, but if you are just want to run valve games it shouldn't be any trouble.
-- -Chris
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