When you run 2 servers on 1 box should make you a different user to run each server?  Also not that i do it, but why is it bad to run servers as root? i always hear people say this but they never say why.

You don't need a separate user for each instance of the server.  You can set log locations within the SoF2 server to make sure everything goes to the right place.

As far as running as root, the primary reason is one of security.  One common flaw in internet facing services involves buffer overflows or race conditions that allow arbitrary code to be executed or arbitrary files to be modified/created.  If one of those flaws should be discovered and exploited in the SoF2 server process, it would be far better for that vulnerability to be limited to the permissions of an average user than that of root.

cool thanks for the answer, i always wondered about that.