Earlier quoted context omitted.
Yeah, I've had a $20 Linode virt for a couple of years and it's been pretty reliable.
Is a $20 vps (360MB ram) enough for a small website? I want to get one for me but I don't want to get rammed in the ass when I realize it is not enough and need to upgrade to at least 1GB. I see I can get 1GB RAM at prgmr.com for the same $20
I run a Django-powered site on a 96meg host on an over-loaded Xen host built with ancient P4 Xeon servers (No VT instructions). I use nginx and sqlite to cope with my tiny amount of available memory. With that said the site sees little traffic (<500 hits a day, peaks ~60 hits in 1 hour), but I've never run into issues.