I've got a HostGator, dedicated server in Germany and a 1and1 developer account (for a few years now). I'm in the process of moving them all into VPS at slicehost.com. You can start the slices out cheap and work your way up to multiple slices with backnet and public interfaces. So if you need to grow you can do a load balancer on your primary IP and then have other slices doing the work. Their admin tools are pretty easy to deal with too. This option is best if you aren't afraid to administrate your own box though. They have Chat support, forums, articles etc to help people out who are fairly new to system administration with optional backup for your slices.