Before answering this let me tell you that I cannot endorse any of the services because I've never used them so I don't know how good or bad a service they prov

Before answering this let me tell you that I cannot endorse any of the services because I've never used them so I don't know how good or bad a service they provide. You'll have to check this for yourself (google for opinions, etc.). Slicehost and other similar services (VPS') are about as cheap as it can get but bear in mind that you're sharing hardware with other people so don't assume you'll be the only one using the server. If you want real hardware, google for "managed hosting". Alternatively, if you already have a 1u server lying around or can get hold to one (or more) it may be cheaper to search for "colocation services" which should show you some companies that will provide rackspace for your servers. Renting hardware may be cheaper but if you buy a couple of servers on ebay and go for colocation, in the event of your business going belly up you can sell the hardware and maybe get enough money to last you for a couple of months while you search for a job or make new plans for world domination.