Dual Xeon 2.0Ghz (Hyperthreading - 4 Virtual CPUs)
1GB DDR RAM
160GB IDE or 73GB SCSI HD
5 IP Addresses
1000GB Transfer
$40 setup, $140/month
P4 2.8G with hyperthreading (512k L2 cache FSB 800)
2GB RAM
120GB Hard Disk x 2
RedHat 9
No Setup Fee
$59.95 per month
(Only problem is Hong Kong)
As you see there are many better deals on the market

Just that sometimes you make compromises, sometimes you dont.
Having your own dedicated server is def the way to go though.
Btw im not advertising, just showing some deals that Ive seen around