Try rackspacecloud servers (http://www.rackspacecloud.com) - uses pretty much the same backend as slicehost (slicehost owned by rackspace). I find them cheaper as it's not a fixed cost, but pay as you go.
This. I've setup several client servers on slicehost in the past 6 months and they have been solid. More recently, I've put a couple clients on rackspace cloud because the SLA will make the client feel more comfortable. It's been equally solid.
Agreed, the pricing "trick" with them is that you aren't paying for bandwidth upfront, only what you use. For our particular use cases it has been a huge money saver.
