Nginx is incredible. It's my second favorite piece of software (haproxy wins by a hair). At justin.tv we serve tens of billions of requests per month using nginx, and it uses so few system resources that we can run our CPU-heavy caching engine on the same servers.
Take a look at the source sometime. It's kind of fun to see an HTTP parser written like, "if (ngx_str3_cmp(m, 'G', 'E', 'T', ' ')) { r->method = NGX_HTTP_GET;"