I don't know that I would call a python http server "mini", at least as far as memory footprint and efficiency are concerned. If what you want is a lean and mean server for static content or a couple of cgi's, an ARM binary of boa or tinyhttpd or several others sounds like a better choice.
OTOH, if the goal is to write a local web app in python that is its own web server, using one of the lightweight web frameworks (like Karrigell or Snakelets), that is very convenient. I have one on my Zaurus that I use daily, need to try it out on the 770 someday.