I've had good luck with Zill.net at the recommendation and support from Solution Grove. I'm trying to break into the K-12 market with .lrn and .folio.
This situation for hosting has worked pretty well for me. Although it has not been an easy sell of the system because what people see when they check the web for .lrn is higher education sites. I have only found I elementary school that said they were using it, but they didn't have much at all.