Well, if there is a premium on space, what you really need is a way to simulate a web server without a computer
I created a small application using solely batch files, as soon as I'd plug my stick in it would start up webserver, IDE and FTP.
What I did was strip down a regular versions Apache 2.x, PHP and MySQL, then creating batch files to run them.
Then I created a virtual drive, that simulates a default linux filesystem and copied the files accordingly(eg. webroot = /user/www).
I also use portable versions of a PHP IDE called "Side" - can't remember where I got it but it suffices - and coreFTP LE.
This was the best method I could see to use on a 2GB stick.