I want a way to display all internals server based information of WSS 3.0 like Hard disk space, RAM usage, etc in form of a Webpart....Is it possible?
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Assuming you already know how to write a web part, it is just a matter of querying the information you are interested in using WMI.
Yes you can use the PerfMon api under the System.Diagnostics.PerformanceCounter namespace. Through this you can get all the desired information of the server where this web part would be hosted.
Just launch the Performace MMC on your machine (RUN->PerfMon) and look for the right counter name.
I think Sahil Malik has done a cool video aroud the same. Just google it out!