Personally i thought that with better resources management i could do much more, so i wrote a custom HTTP server in that could fit in less than one MB of RAM. Most of my pages were generated offline using a custom program in FreePascal.
The server could also execute CGI scripts, so i also wrote a forum in FreePascal.
According to my logs, the whole system ran out of memory only once :-). Until the day i decided to give myself a little more features (when i got a much better VPS from Linode) i had about 5-6 sites running (different domains), a Subversion server and a few "dynamic" apps.
The forum can be found here. I still run it in my new VPS, although it got some spam. The a + b = ? anti-spam feature was new when i wrote the forum but seems that bots got better :-P.