VPS with 300MHz CPU, 256MB RAM, 30GB storage, 200GB a month, $1.05/month

hostrail.com, use 65% off recurring coupon DEC10CAN. Direct link

This is the cheapest I can find. For USD 1.05 a month, you get,
* 30 GB Disk Space
* 200 GB Monthly Bandwidth
* 256 MB Dedicated RAM
* 0.3 Ghz CPU
* 1 IP Address
* Linux OS

For 1.05 a month, you can’t go wrong.