In Drupal Performance & Scalability, Matt Westgate and James Sansbury teach you all you need to know to get peak performance out of Drupal on the LAMP stack.
They carefully walk you through both installation and customization of the entire LAMP stack. They go over the highly-optimized Pressflow distribution of Drupal. They teach you how to benchmark your site's performance, how to install many types of caching layers and how to optimize each layer of your server infrastructure. They even teach you all about things like CDN integration, APC, Varnish, Memcache and other caching layers within Drupal and MySQL. They discuss scaling strategies, looking at hardware topologies for both co-located and cloud infrastructures. They teach you how to isolate performance bottlenecks and cover strategies for monitoring. They also go over some of the changes in Drupal 7 and the next release of Pressflow. By the end of this video you'll be an old pro at creating high performance Drupal deployments!
You can download the companion files for this video as well, to use as you work through the series.
We used CentOS for this video but Ubuntu will work just as well and the setting of the system time is more a formality than a necessary performance technique.
In terms of Drupal 7, the good news is that the layers of the software stack (varnish, memecache, solr) stay the same, but you'll wire those in Drupal 7 a little differently than you will Pressflow. I saw the start of Drupal 7 Performance Tuning Tips over a http://qa.drupal.org/performance-tuning-tips-for-D7 which should help bridge some of configuration specific settings for Drupal 7 and this video. It's not an exhaustive reference since Drupal 7 shipped only recently, but it's a good start to the strategies folks are using to scale Drupal 7.
The timing ended up being very bad for recording the Memcache section, as it was right about then that the Memcache module was going through some huge refactoring. That said, the instructions in the video should still work. The biggest change is that you no longer need separate bins, so it actually makes the installation simpler. To be safe though, follow Memcache module's installation instructions exactly.