I am in the process of moving from a GoDaddy’s virtual dedicated server to a real dedicated server at GoDaddy. So far my only complaint about the new server is that there is still headaches setting up email. The key is that you need to use GoDaddy’s Smart Server setup. Kind of BS if you ask me but hey, you still can’t beat the rate of around $100 a month.
The only drawbacks of the virtual server was the lack of a lot of memory and hard drive space. Also if you find yourself signing up for one of these services DO NOT GET PLESK!!! There is no reason to get this and there is no way to uninstall it. You can use Remote Desktop/Terminal Services for nearly everything you need. After disabling Plesk on my virtual server I could no longer use PHP. That may be an issue for a great deal of us.