I upgraded to a dual core processor, blah blah from a VPS the only issue I was having previously was the amount of RAM which was 512 mb and was non upgradeable. MySql couldn't handle that amount of ram and caused insane amounts of downtime on the site until I did a ghetto reboot of the server. It's on 1.5 gigs and is upgradable at anytime. Paying $200 a month currently as I stuck with the same hosting company since they transferred all the data exactly the same as was on the VPS, that way there was no issues on the user's side.
I'm still open to better options out there, setting up a fresh copy of the site is a PITA though and involves many headaches. I'm about $50 off or so from covering the costs of the site up until the new year, and the ads will be dropping then.