Currently I (Zill.Net) offer two packages.
The shared server option is $79.95 per month. This is suitable for development, and smaller community sites.
The dedicated server includes all the hardware and software setup and managed for $175 per month. Since our dedicated systems are based on Athlon CPUs and have at least 256MB of RAM they can handle a great deal of traffic and database queries. AOLserver is quite efficient and quite frankly doesn't need that much power, but it is good to have it.
Since pricing is all over the map, it's difficult to say where we fit in. Pricing is rarely the only issue - my customers so far have cared more about how quickly I can solve any problems they have, and how quickly the servers are up and running.
If you are willing to do all your own security and Unix administration, you could look at rackspace.com (good reputation) or RackShack.net (the White Castle of dedicated servers). They are cheaper, but don't expect them to be able to support any problems that crop up.