thttpd works with the 2.4 kernel, so I would imagine the problem is not there. I could be wrong, but that's my feeling. It works on my work PC (Ubuntu with 2.6) perfectly fine with the same /etc/thttpd.conf file too.
I've tried a little messing around so far, but nothing stood out to me. I'm adding and removing things semi-randomly now (I'm not removing anything I obviously need, not adding anything I obviously do not). Here's the original config I had been using up until now:
CONFIG_ARM=y
CONFIG_MMU=y
CONFIG_UID16=y
CONFIG_RWSEM_GENERIC_SPINLOCK=y
CONFIG_GENERIC_CALIBRATE_DELAY=y
CONFIG_GENERIC_IOMAP=y
CONFIG_EXPERIMENTAL=y
CONFIG_CLEAN_COMPILE=y
CONFIG_BROKEN_ON_SMP=y
CONFIG_LOCALVERSION=""
CONFIG_SWAP=y
CONFIG_SYSVIPC=y
CONFIG_SYSCTL=y
CONFIG_LOG_BUF_SHIFT=14
CONFIG_HOTPLUG=y
CONFIG_KOBJECT_UEVENT=y
CONFIG_KALLSYMS=y
CONFIG_FUTEX=y
CONFIG_EPOLL=y
CONFIG_CC_OPTIMIZE_FOR_SIZE=y
CONFIG_SHMEM=y
CONFIG_CC_ALIGN_FUNCTIONS=0
CONFIG_CC_ALIGN_LABELS=0
CONFIG_CC_ALIGN_LOOPS=0
CONFIG_CC_ALIGN_JUMPS=0
CONFIG_MODULES=y
CONFIG_MODULE_UNLOAD=y
CONFIG_OBSOLETE_MODPARM=y
CONFIG_KMOD=y
CONFIG_ARCH_OMAP=y
CONFIG_ARCH_OMAP16XX=y
CONFIG_ARCH_OMAP_OTG=y
CONFIG_MACH_OMAP_OSK=y
CONFIG_OMAP_MUX=y
CONFIG_OMAP_MUX_WARNINGS=y
CONFIG_OMAP_MPU_TIMER=y
CONFIG_OMAP_LL_DEBUG_UART1=y
CONFIG_OMAP_ARM_192MHZ=y
CONFIG_CPU_32=y
CONFIG_CPU_ARM926T=y
CONFIG_CPU_32v5=y
CONFIG_CPU_ABRT_EV5TJ=y
CONFIG_CPU_CACHE_VIVT=y
CONFIG_CPU_COPY_V4WB=y
CONFIG_CPU_TLB_V4WBI=y
CONFIG_CPU_DCACHE_WRITETHROUGH=y
CONFIG_ZBOOT_ROM_TEXT=0x0
CONFIG_ZBOOT_ROM_BSS=0x0
CONFIG_FPE_NWFPE=y
CONFIG_BINFMT_ELF=y
CONFIG_STANDALONE=y
CONFIG_PREVENT_FIRMWARE_BUILD=y
CONFIG_PM=y
CONFIG_CMDLINE="console=ttyS0,115200n8 noinitrd ip=10.0.0.13:10.0.0.12:10.0.0.2:255.0.0.0
sk:eth0
ff root=/dev/nfs rw nfsroot=10.0.0.12:/data/rootfs2.6,nolock mem=32M"
CONFIG_ALIGNMENT_TRAP=y
CONFIG_MTD=y
CONFIG_MTD_PARTITIONS=y
CONFIG_MTD_CMDLINE_PARTS=y
CONFIG_MTD_CHAR=y
CONFIG_MTD_BLOCK=y
CONFIG_MTD_CFI=y
CONFIG_MTD_GEN_PROBE=y
CONFIG_MTD_MAP_BANK_WIDTH_1=y
CONFIG_MTD_MAP_BANK_WIDTH_2=y
CONFIG_MTD_MAP_BANK_WIDTH_4=y
CONFIG_MTD_CFI_I1=y
CONFIG_MTD_CFI_I2=y
CONFIG_MTD_CFI_INTELEXT=y
CONFIG_MTD_CFI_UTIL=y
CONFIG_MTD_OMAP_NORv2=y
CONFIG_BLK_DEV_LOOP=y
CONFIG_BLK_DEV_RAM=y
CONFIG_BLK_DEV_RAM_COUNT=16
CONFIG_BLK_DEV_RAM_SIZE=8192
CONFIG_BLK_DEV_INITRD=y
CONFIG_INITRAMFS_SOURCE=""
CONFIG_IOSCHED_NOOP=y
CONFIG_IOSCHED_AS=y
CONFIG_IOSCHED_DEADLINE=y
CONFIG_IOSCHED_CFQ=y
CONFIG_NET=y
CONFIG_PACKET=y
CONFIG_UNIX=y
CONFIG_INET=y
CONFIG_IP_MULTICAST=y
CONFIG_IP_PNP=y
CONFIG_IP_PNP_DHCP=y
CONFIG_IP_PNP_BOOTP=y
CONFIG_IP_TCPDIAG=y
CONFIG_NETDEVICES=y
CONFIG_NET_ETHERNET=y
CONFIG_MII=y
CONFIG_SMC91X=y
CONFIG_PPP=y
CONFIG_PPP_MULTILINK=y
CONFIG_SCSI=y
CONFIG_SCSI_PROC_FS=y
CONFIG_BLK_DEV_SD=y
CONFIG_CHR_DEV_SG=y
CONFIG_INPUT=y
CONFIG_INPUT_MOUSEDEV=y
CONFIG_INPUT_MOUSEDEV_SCREEN_X=1024
CONFIG_INPUT_MOUSEDEV_SCREEN_Y=768
CONFIG_INPUT_EVDEV=y
CONFIG_SOUND_GAMEPORT=y
CONFIG_SERIO=y
CONFIG_SERIO_SERPORT=y
CONFIG_INPUT_KEYBOARD=y
CONFIG_KEYBOARD_OMAP=y
CONFIG_INPUT_TOUCHSCREEN=y
CONFIG_TOUCHSCREEN_OMAP=y
CONFIG_VT=y
CONFIG_VT_CONSOLE=y
CONFIG_HW_CONSOLE=y
CONFIG_SERIAL_8250=y
CONFIG_SERIAL_8250_CONSOLE=y
CONFIG_SERIAL_8250_NR_UARTS=4
CONFIG_SERIAL_CORE=y
CONFIG_SERIAL_CORE_CONSOLE=y
CONFIG_UNIX98_PTYS=y
CONFIG_LEGACY_PTYS=y
CONFIG_LEGACY_PTY_COUNT=256
CONFIG_I2C=y
CONFIG_I2C_CHARDEV=y
CONFIG_I2C_OMAP=y
CONFIG_TPS65010=y
CONFIG_EXT2_FS=y
CONFIG_ROMFS_FS=y
CONFIG_DNOTIFY=y
CONFIG_AUTOFS_FS=y
CONFIG_AUTOFS4_FS=y
CONFIG_FAT_FS=y
CONFIG_VFAT_FS=y
CONFIG_FAT_DEFAULT_CODEPAGE=437
CONFIG_FAT_DEFAULT_IOCHARSET="iso8859-1"
CONFIG_PROC_FS=y
CONFIG_SYSFS=y
CONFIG_RAMFS=y
CONFIG_JFFS2_FS=y
CONFIG_JFFS2_FS_DEBUG=0
CONFIG_JFFS2_ZLIB=y
CONFIG_JFFS2_RTIME=y
CONFIG_NFS_FS=y
CONFIG_NFS_V3=y
CONFIG_ROOT_NFS=y
CONFIG_LOCKD=y
CONFIG_LOCKD_V4=y
CONFIG_SUNRPC=y
CONFIG_PARTITION_ADVANCED=y
CONFIG_MSDOS_PARTITION=y
CONFIG_NLS=y
CONFIG_NLS_DEFAULT="iso8859-1"
CONFIG_NLS_CODEPAGE_437=y
CONFIG_NLS_ISO8859_1=y
CONFIG_FB=y
CONFIG_FB_MODE_HELPERS=y
CONFIG_FB_OMAP=y
CONFIG_FB_OMAP_INTERNAL_LCDC=y
CONFIG_FB_OMAP_DMA_TUNE=y
CONFIG_DUMMY_CONSOLE=y
CONFIG_FRAMEBUFFER_CONSOLE=y
CONFIG_FONTS=y
CONFIG_FONT_8x8=y
CONFIG_LOGO=y
CONFIG_LOGO_LINUX_CLUT224=y
CONFIG_USB=y
CONFIG_USB_DEVICEFS=y
CONFIG_USB_ARCH_HAS_HCD=y
CONFIG_USB_ARCH_HAS_OHCI=y
CONFIG_USB_OHCI_HCD=y
CONFIG_USB_STORAGE=y
CONFIG_OMAP_UWIRE=y
CONFIG_DEBUG_BUGVERBOSE=y
CONFIG_FRAME_POINTER=y
CONFIG_CRC32=y
CONFIG_ZLIB_INFLATE=y
CONFIG_ZLIB_DEFLATE=y
Thanks!