Moodle 2 is pretty hefty in the DB department. Could be, since remotely hosted, that there is an issue (already) with Moodle being able to record sessions in the DB ... which is 2's default.
The reason you didn't see a sessions directory in the moodledata directory was due to config of Moodle. It's still set to use DB. Let's force Moodle to use disk based sessions.
Edit config.php and place the following line in it:
Then try to login. You could watch the data folder/sessions folder to see if a new file is created ... that's your session information.
Also, check apache error logs as well as permissions/ownerships on all of the moodledata folder. Also, check the permissions on the DB user inside MySQL. Can user create records? Probably best at this point to give that DB user permissions to do it all. You might not be able to do that since remotely hosted. Check your tools to see if you can. If not, then check with provider.
'spirit of sharing', Ken