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I believe the evidence shows that it doesn't work. It's hard to beat the super-cheapness of an Amazon micro instance - I have two, and if you get a reserved instance it works out to around $9 a month.

If you are lucky enough to live in a place with proper internet access it's great for hosting small projects and stuff like that. I have a server in my parents garage, they have a 30/30 (soon to be 60/60 for no increase in price) fibre connection with unlimited bandwidth and the ISP does not mind people hosting stuff. It's pretty awesome for hosting whatever I'm playing with at the moment. Without having to pay anyone besides perhaps parts of my parents powerbill since it's a hungry beast of a server >_<

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