CoolVibe,

As an ASP.Net shop we go with Dedicated hosting. I don't feel like I'd have my hands around DNN any other way. I like having true server backups to revert back to if something goes wrong and the ability to do an occasional fork of a core module to add a critical feature or 2. If my server is old or starts to die I simple zip up my DNN install move to another server and unzip complete with modules, data, etc..

That said if you aren't a programmer and dont have sysadmin experience then all the pluses I've outlined are meaningless and you should go hosted. For a price comparison we have 3 servers at softlayer each running about $129/month for aDual Core P4's with 2 gigs of ram. There are cheaper companies out there but we found most of the reputable ones to be comparible in price. I think I've seen people advertising $6/month for standard DNNhosting.

Michael

DNN 4.5 is much better when it comes to initial install and should help get you up and running pretty quickly (this version should be out next week assuming we don't find any more showstoppers this week).

With that said, I always recommend a dedicated or VPS plan for those individuals whose website is a major focus of their business.  The hosting business is very commoditized which means that there is very little profit generated off of any single hosting account.  With lower end plans, hosters are going to do whatever they can to service your account with the least amount of effort.  If you want better customer support and better site performance then you should plan to pay a premium for your hosting.

Many companies now offer some sort of virtual server plan which is basically somewhere between a standard shared hosting account and a dedicated box.  In many virtual plans, you have a small number of customers who share the physical box, but because they are running in a virtual machine, they can still have remote desktop access and other direct control as if they had a dedicated box.

The one issue that is likely to be a bigger factor for your business however, is how much bandwidth any given account provides.  Check around as various companies have wildly differing bandwidth offerings, even for the same price.  I have found some vendors who only offered 150GB of bandwidth on a ~$100/mo plan while others were offering 1TB+ for a similar package.