I recommend a VPS with slicehost.com at 20$ month, with Nginx to serve static files and fastcgi for Django. Nginx+FastCGI is the answer to the memory constraint

I recommend a VPS with slicehost.com at 20$ month, with Nginx to serve static files and fastcgi for Django. Nginx+FastCGI is the answer to the memory constraints(256mb). There are multiple plan you can update to. And since it's a VPS, updating is painless.