To allievate all the issues that we've had with servers in the past I took the option of leasing an entire server. The server is meant for Webhost resellers so its fully specc'ed up to run multiples of sites, but we are currently the only ones on here. Even though the DB may be 128MB large, its still kinda lonely in the 80GB of disk space this server has. Becuase this is a reseller server it also has a monthly bandwidth capacity of 500GB, which we are not quite using yet!
Advertising is nearly covering the costs of the server (on a good month).