First, let me thank Adam for pointing out that the App and Sys logs are a great place to start to look for problems.
In reply to Kevin's question: there isn't a hard limit on how many operations per second per user is too much. It's just a question of how much hardware you want to buy, and how many applications the users want to run that access the server. If I saw a server with 500 users and 2 ops per second per user, I'd pull out ExMon to identify if the load was caused by a few users. I've quite often found certain apps to be capable of creating extremely high load. When even one or two users run some applications, it can have a noticeable effect on the server. Occasionally we've found an application was incorrectly configured and were able to reduce the load. On the other hand, sometimes everyone in the organization has multiple applications accessing the server, and the applications are important to their business - in this case, we just make sure the server is beefy enough to handle the load. There's just no single simple answer here. Is there enough interest in this for another blog topic?