By way of clarification, domestic DSL connections are
ADSL, where the "A" stands for asymmetric. The asymmetry is that download is much faster than upload, as the other posters have been pointing out.
http://en.wikipedia.org/wiki/ADSL
Your ADSL connections are a bottleneck - even if 2mbps upload were available to your neighbour (and yours was allowing full 2mbps download) that's still a crawl compared to typical networking speeds, and your ftp server should be able to easily surpass 2mbps. I've just seen over 8 Mbyte / second sending data to proftpd running to a 700Mhz pentium 3 box running Ubuntu 7.10:
From my XP box:
...
ftp: 50980864 bytes sent in 5.76Seconds 8843.17Kbytes/sec.
...
On the ubuntu box:
> cat /proc/cpuinfo
...
model name : Pentium III (Coppermine)
stepping : 6
cpu MHz : 732.344
...
(they're connected by 100Mbps ethernet via the same switch, and the ubuntu box did have 512M RAM)
If you want to truly measure your ftp *server* performance then do it from the same network. You have ubuntu on your
old PC which implies you have a
new PC also on the network (with windows installed?). Windows (up to XP - don't know about vista) has an ftp client available from the command line (type "ftp"). If you use this to upload a file to your ubuntu box, and they're both plugged into the same router, you'll then get a good idea of the true upload speed.
hope that helps,
Robin