just acquired a proxy and asked godaddy tech support -- even they didn't know if it was against their TOS. How odd is that? I have one of their "unlimited" shared hosting plans. Any of u have experience with proxies on godaddy? allowable?
I doubt godaddy tech support didn't know, they were probably confused - and no godaddy doesn't offer proxy hosting, not to my knowledge - proxy hosting requires a lot of bandwidth and a lot of CPU and Ram usage, not likely that you'll fit in a shared hosting environment if your own dedicated server, that's another story, then you can do as you please.
As njoker555 said, I doubt hostgator would allow proxies to be hosted but it wouldn't hurt if you contacted their live chat.
GoDaddy, like many other companies, use tricks to allow the usage of the word "Unlimited" on their hosting plan advertisements. There are ways that you can use the word without it mean truely unlimited. As has already been mentioned, proxy websites do drain a lot of power from the whole dedicated server. This isn't fair usage to a guy who only hosts his family photo album but they still expect a fast server which your proxy site may interrupt. I would strongly recommend you go for a higher end shared package or even a VPS from Santrex. You can find lots of web hosts at my proxy hosting reviews site.