testuser: Your test is perfectly valid for looking for a rough estimate for throughput. It's a little unscientific, but hey, it works.
If you're using CIFS (Windows networking), NFS, Appletalk, FTP, etc. to transfer files across a network, then you're talking between 10-25% overhead, and 90-75% "real data". That means that at the very least you should be seeing 75Mbps (~9.375MBps).
Why are you seeing low numbers? Believe it or not, CIFS and NFS take up a lot of CPU overhead, especially when using 3rd party utils like Dave, MacNFS, etc. You may want to make sure that your CPU isn't hitting 100% when transferring (though 1.7MBps is REALLY slow!)
I'd also say that there's a pretty good bet that you are experiencing the duplex mismatch problem I was talking about earlier (even with the crossover cable hooked up). I'd estimate that <b>95%</b> of all ethernet performance problems stem from this basic problem.
Incompatibilities: Yes, it's possible that there are slight protocol differences between the prog you're running on 9.2 and on OS X. This is pretty unlikely, though, and implies that the implementation on one (or both) of the two machines is buggy or broken. Do you know what protocol you're using to copy files with (i.e. AppleTalk, CIFS, etc)? I don't know what OS 9 and X use by default.
Ian