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DigitalOcean VPSs go for 512MB, 20GB disk at $5 per month/0.7¢ per hour.

Prgmr is also really great too, 64MB for $5/month (by comparison, 512MB for $12/month). Run by an HN fellow, so that's also a plus.

EDIT: goodness gracious, i didn't realize that literally everyone in this thread is mentioning DO when I wrote this post!

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