I used engine yard for a recent project. Great guys, but they don't solve the sysadmin problem unless you're a big client. They're also slightly behind the curv

I used engine yard for a recent project. Great guys, but they don't solve the sysadmin problem unless you're a big client. They're also slightly behind the curve when it comes to Passenger. If the budget is less than $1000 I'd just find a good independent guy and get a server at Rimu (or similar host).