WordPress MU

I am setting up a small personal site for myself, because most CMS' are bloated especially for my needs I am opting to use WP as my CMS. I also want to host a blog in a sub directory using WP as well, the blog however would be restricted to those I provide a username for. AFAIK the only way to acomplish this would be to have 2 seperate installs of WP or use MU.

Using MU seems to have some advantages over using regualr WP:

1) Single login for me to manage my site and post to my blog

2) One thing to have to upgrade rather than teo

Howver, and this is where the question comes in...I don't know if MU would be overly resource intensive, I am on a shared server so I don't want to hog the server resources for the other customers and get my site shutdown. And I don't know if there is extra overhead reource useage for MU running 2 blogs over running 2 WP blogs.

Call me lazy but MU seems easier to me but being is how I am on a shared server what would you recommend?

Well, WP now has the MU functionality rolled in to core with 3.0.
http://codex.wordpress.org/Create_A_Network

there is no version of MU beyond 2.9.2.

As far as server resources if you only have 2 blogs and you own both, you should be okay. Any resource usage would be more related to if you suddenly got really popular. ;)