There is nothing wrong by running a slow server. The poeple visiting you knows that from beginning. Only a small fraction of people around the world are faster than you. Then you also get a opportunity to specialize your ftp againt a certain area, maybe that area isn't huge bloatware but rather something less huge.
Server software is a matter of taste. I like GuildFTPd.
Also see the thread
http://www.betaone.net/forums/showth...threadid=28186