512 MB: Apache2 / PHP, serves a dozen websites last time I checked, most notably a forum that has a few thousand hits a day and my blog, which when it gets spiky goes up to X0,000 hits in a day.
256 MB (until recently): Bingo Card Creator, which is Nginx => 2x Mongrel.
I bumped the 256 up to 512 (a process that took me above 5 minutes and a restart) when I started developing the new version, so that I could fit a staging server on the same box. Currently it has about 6 Rails instances running on it at any given time (2x Mongrels for the live site, 2x for the staging, 2x for DelayedJob or consoles). After I release the new version I'm probably going to put the staging server on another box and reallocate the saved memory to more instances for the production site.
How much traffic do your slices use?