If you are willing to take a chance on a start-up company; for the next 7000 or so virtual Linux servers created, CloudAtCost is allowing the charter members of their hosting service to set up a Linux "cloud-based" server for a one-time fee as low as $35 (they will take Paypal).
For the $35 server, you get a CentOS, Debian, or Ubuntu server with:
1 Xeon vCPU, 1 Public IP, 512MB RAM, 10GB SSD, 100Mbit Internet with 500GB of monthly transfer. They do have pay-by-the year plans. Also, they have two other packages that basically double, then double again these specs. (for $70 and $140 one-time cost.) They have even bigger discounts if you buy 10 pack or more "servers."
http://www.cloudatcost.com
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