As you state on your p2pool server that your hardware only costs you $15/month, my first guess is that it is probably lacks power (not enough CPU/RAM/IO capacity/...) to reach the 0.2-0.3s you can easily get on a recent 3+GHz multi-core CPU with default settings for p2pool and bitcoind.
I have access to lots of CPU for brief computationally intensive tasks (4 cores, 3+ gHz), but I have maximums on system load. The server has a system load of 0.05. P2Pool never seems to get above 10% CPU. Disk is generally idle, and disks are SSDs, nothing appears to be swapping.
I will take my other off-topic questions to the main thread. Thanks.