Hi,
Be a bit more constructive! MANPREETk deserves some advice (after all, he has done the homework by searching the forum

). And clearly he has little experience in running a server. It can be quite hard to figure out everything yourself.
@MANPREETk:
OK, so this is how I run my server. It may help you in setting up yours.
I have a separate machine for the server. The server PC does not need a 3D card, and could be an older PC (let's say a 1 GHz Celeron with 512 MB RAM, or even less powerful). Win 2K and XP are good platforms for running the server (I use Win 2000).
Run a _dedicated_ server by using the following command:
quake3.exe +set dedicated 1 +exec "server.cfg"
Put this to a batch file (in the 'quake3' directory) and make a desktop shortcut to start it. The config file 'server.cfg' (in the directory 'baseq3') should contain your unique settings. Should look like this:
==============================================
set sv_hostname "YOUR SERVER'S NAME"
set password "XXXX"
set rconPassword "YYYY"
set timelimit "15"
set fraglimit "20"
set sv_maxclients "6"
set g_gametype "0"
set g_weaponrespawn "20"
set g_spSkill "2"
set bot_minplayers "3"
set m1 "map ztn3dm2; set nextmap vstr m2"
set m2 "map ztn3dm1; set nextmap vstr m3"
set m3 "map q3jvx1; set nextmap vstr m4"
set m4 "map q3_ultrav; set nextmap vstr m5"
set m5 "map q3_elkdm2; set nextmap vstr m6"
set m6 "map fora_rage; set nextmap vstr m7"
set m7 "map n3dm1; set nextmap vstr m8"
set m8 "map qxtourney1; set nextmap vstr m9"
set m9 "map addict; set nextmap vstr m10"
set m10 "map charon3dm9; set nextmap vstr m11"
set m11 "map leaks2; set nextmap vstr m12"
set m12 "map tom_dm1; set nextmap vstr m1"
vstr m1
========================================
This sets the gametype to FFA with 6 players max, with 3 bots initially present. The map 'ztn3dm2' is automatically started, and the other maps listed in the last section of the config are automatically rotated. You should of course insert your server's name and passwords, and adjust the other parameters (time and frag limit, maps rotated, etc.) to your liking.
Install a firewall on the server PC. I suggest 'Look 'n' Stop' (silly name, but a great firewall for our purpose, because it is free and highly configurable). You can find it here:
http://www.LooknStop.com
Configure the firewall to block _all_ TCP packets and allow the following UDP packets to pass:
from local port 27960 to remote ports 1024-65535
from remote ports 1024-65535 to local port 27960
Block _all other_ UDP packets.
Configure your router so that the server machine is in the DMZ zone (i.e. allowed unlimited access to the net both ways).
Make an account at 'dyndns.org' to have a constant URL for your dynamic IP (but I believe that we have discussed this before).
Hope this helps.