TMDHosting put a few posts on d.o. recently, so I went to look at their service. I have often posted that Drupal on shared hosting does not work, so I thought I should give them a chance.
The homepage http://tmdhosting.com/ offers Drupal specialist hosting at $3.85 per month inc. free domain. A very competitive price. (Don't take any notice of the countdown timer till end of Easter special offer: I signed up on time, but the timer started to run again from zero after it expired).
They offer free module install and free updates (which their homepage calls 'updates') on Drupal. I have not tried this service.
Even an install of Nodestream (a module-heavy Drupal distro) worked fast. I do not know whether that is because they are doing something right, or because there are only 8, low-traffic domains so far on this 8GB RAM server (96.127.139.58).
The homepage says the use lightspeed, but this appears not to apply to the Drupal server, which has Apache (IMO likely to be less trouble). It has php 5.2 (5.3 is recommended for D7 and some important contrib modules will not work on 5.2 e.g. http://drupal.org/project/notifications). By default 256MB RAM is allocated to php. It is a cPanel server running mysql 5.0 (why? cPanel does support 5.5).