Sure there has been some growing problems; I don't think that the owners of the site expected it to grow this fast--otherwise they would have had a bigger server to start off with. There are moments when the site moves sluggishly, but I figure that they will catch up eventually.
The jury is still out whether it will be a good social networking site, on par with MySpace and Facebook. I think it might get there. I am still not holding my breath on making any direct money from the site, but I do know one writer who has made some indirect money (sold copies of her lulu book) though there.
I plan on posting a shout-out there when my next lulu project is ready.
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