We (aegis hosting) do shared hosting and dedicated servers capable of running Magento but we’re adding Virtual Private Servers (VPS) for more demanding web applications like Magento amongst others.
I thought I’d ask what people wanted in a VPS particularly for Magento?
On shared hosting, we run with suPHP, as do many shared hosting providers for security, which causes occasional issues with Magento Connect as there’s a couple of bugs in that that set the wrong permissions on upgrades/installs. Nothing major if you know about them. The other issue with suPHP is that it means you can’t run PHP accelerators since you’re running in CGI mode.
On a VPS/Dedicated server you of course don’t need suPHP and you can run how you want of course.