So you will like to buy a cheap VPS... to pay it monthly? Have a look on DP -> http://forums.digitalpoint.com/forumdisplay.php?f=98 You can find VPS starting from $6,99 and all from reputable networks. Mind that most of the time too cheap means unmanaged so if you are searching for a managed VPS you need to change "cheap" for "affordable".
Cheaper VPS usually have lower resources, check this site for more low end VPS. http://www.lowendbox.com/
I would recommend taking a look at Burst.net (http://burst.net/linvps.shtml) if you want a cheap VPS. Their prices start at $5.95 and I have used them in the past for OpenVPN. But do remember, cheap != the best.
You could google it out with search string like cheap vps. And yes, lowendbox is really good site to find our cheap servers.
can you manage it yourself? the price difference between managed and unmanaged vpss is rather relevant, especially if you consider small vpss using a control panel to manage the server content is different from managing security updates, installing packages, making custom configurations and keeping the server running if you can't don't bother trying, you'll end up in a mess and throw a way a month trying to do things that you don't have a clue about
What are your requirements in terms of disk space and RAM? Also I wouldn't trust plans with No Bandwidth Limitation unless the host restricts the type of content which is allowed on VPS plans. If you need cheap hosting, I'd rather search the net for coupons and discounts, as vps can't be cheap if it's not oversold.
To buy a good and decent VPS it requires monthly about $7-9 without control panel ( Obviously Kloxo is there to help you at free of cost) but the managed VPS may go upto $19-$29 per VPS, cheap VPS are available from $2.5 per month in citynethost
I suppose that first of all you need to determine what is cheap web hosting solution and what VPS configuration you are looking for.
I read you thread and it sound so really silly. If you want to go for cheap VPS you will end up with downtime, unfriendly support, etc.
CityNetHost has VPS servers starting at 2.50$ a month, gotta find the coupons though. Personally I pay for a year to get the price to 2.00$/Month or 24.00$ a year. They are based in Egypt though lol.
Im not joking, its what my minecrafty.com is hosted on. Its running Ubuntu server edition, I have full SSH control also. 512 mb ram and 1gb burstable, 1000gb transfer also with I think 500 or 50gb space.