I have several of these MediaTemple servers (if you pay per year, this is only $ 20 / month for the initial configuration), and it has worked so far, plus you can update / lower the configuration (storage space and RAM) literally in 5 minutes. I installed pg 9.1 beta and postgis 1.5.3 on them and it works fine.
But my favorite feature today is backups of an instant snapshot in which it saves a snapshot of the entire system (database status, file system, running processes) and can restore it in 2-3 minutes, which is very useful for you " finetuning your server, because even if you completely break everything, you still have a panic button to restore everything to working condition.
I have not tested it yet, however New EnterpriseDB cloud tools could make Amazon EC2 an interesting option (I am using S3 for daily backups now).
wildpeaks
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