Game server

well, I installed it, going to run it tomorrow and see the resource usage in a full game, idle it seems to use no cpu and little memory.

Linodes tend to have a ton of available CPU resources, so that's probably not a problem. RAM isn't a problem if you just pay for enough for your game server (I doubt you'd want to run more than one on 720MB of RAM), network is usually underutilized (linodes can upload at 50Mbps on a gigabit pipe, although that 50 can be raised if you need it) disk IO is usually the only point where there is contention (due to the nature of disks).

Game servers tend to be mostly demanding of CPU time, and since Linodes have that in spades, I think you'll be alright.

I run a 24man TF2 server on a 360, have no problems, but it is the only thing running on that linode also. You should have no problems with a 8 man L4D2 server.