This is as opposed to the Client sending its one packet out and getting a few back from the server. A Host that has a slow network connection needs to either limit the number of Clients or become a Client. The Host also need to have a fast machine. The faster the better. Pentium II 300 is what I would recommend for 8 or more players.
More RAM helps as well.
While Windows does not map more than 64 megs of RAM, when multitasking the extra RAM can be used by the applications. 96 MEGS of RAM is what I hear is good for a host, with 128 being a better idea. Anyone who hosts on a connection slower than 56k is wasting their time. T1, ADSL, or Cable modem is preferred if you're hosting. Client hardware is far more tolerant.