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> and install nginx

Yeah there's your problem...

You can replicate the exact same experience (only worse) with any other webserver like apache, lighttpd, cherokee, etc.

Tux may be a bit faster, but it can't serve dynamic content nearly as fast as it serves files, so that's pretty much useless.

Have you tried other operating systems?

Have you tried writing your own webserver? Then tuning it to your particular use case?

Yes

hmm so I've written a webserver and am able to get thousands of concurrent requests on a small amazon instance without issues.

And you've written a webserver and you can't.

Interesting...

Can we see your results?