There's a couple numbers I like to look at on a vmstat:
1) buff + cache: This is about 223MB for you, which is excellent. This is how much memory the kernel is using to store disk-based objects in memory. You can consider this "free" memory -- if an application need a lot of RAM suddenly, the kernel can shrink buffers and cache very quickly.
You're probably now wondering "so why am I using any swap at all?!"... the kernel keeps track of how often chunks of memory are used and will choose to swap out rarely-used stuff to have more memory to cache frequently-used stuff.
2) si + so: This is how active it is with swapping. Seeing lots of big numbers here == swap thrashing == bad performance. Anything above about 200 catches my attention, 'tho if you run into true swap thrashing, you'll know it
3) bi + bo: This is how actively you're reading and writing to disk. Disk I/O is expensive (that is, it takes more time and has a greater impact on performance than, say, memory or CPU operations), so minimizing this is a quick way to eek some more performance out. Your I/O looks great... not too much reading, and writing looks pretty reasonable (you're probably logging web traffic and writing new stuff to your database).
4) The CPU stuff. us, sy, id, and wa add up to roughly 100%. "us" is how much time user tasks (daemons, scripts, sshd, etc) spent doing things; "sy" is how much time the kernel spent doing its things (pushing packets, scheduling tasks, pondering memory allocation, etc). "wa" is how long tasks were waiting for disk I/O -- in other words, if this number gets high, things are slow. "id" is simply 100% minus all those; the idle percentage.
So, yeah, I think you're in great shape.

-rt