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hundredly - 5:03 am on Nov 28, 2005 (gmt 0)
Ideally you would do this with a firewall device that sits in front of your webserver(s). A good Cisco device would be able to handle a really high request load, and would not cost your webserver a single CPU cycle. A software based firewall running on the webserver would be ok too - though, since the request needs to be handled by your server still, that's going to result in some usage on that server. Still - blocking at the level of a software firewall is better than trying to block from the apache .htaccess level - because the firewall operates at a lower level on the TCP/IP stack. A free and very easy to setup/use software firewall that would run on red hat enterprise is called 'apf firewall'. It includes an IP block list (/etc/apf/deny_hosts.rules). As far as the hardware firewall - I would definitely suggest you contact the RackSpace support people about this - they definitely are the experts. While the external hardware firewall is definitely the better choice for reducing usage on your server - it would be more expensive. Depending on the exact device they recommend for this, the cost might be in the range of $500 - $5000.
I still think the best solution is to block the offenders with a firewall.