I just set up a new linode, This is like 30usd a month for 512Mg ram / 300G BW, support rocks as its via irc and other users, and you have total control over the setup, plus it supports rails although I use LAMP. But its great having the control and worth learning how to set up the server as you like. I also use vitrualmin to as a control panel, makes very elegant sys.
