I recommend Dreamhost.com They're still at Apache 1.3 but in the process of upgrading. You can get 500MB of storage for $9.95 or 1600 MB for $19.95. While we don't run very high volume, all of the machines have ben able to handle 35 simultaneous users (one class) each with no sweat, and we're a good order of magnitude below the bandwidth limits each month.
They aren't perfect, but they've always been willing to help figure stuff out and have pretty quick response with tech support. I'm running four moodle sites off of them for almost a year now and everything is swell
Here is one final thing you need to know if you do get dreamhost...they've got some wacky security restrictions, and it appears at first like you don't have GD installed and some other things -- but all is well with this one-line addition to an .htaccess file in your webroot
AddType php-cgi .php
If you do host through them I can help you set it up.(It'll take about ten minutes after your dns record and mysql database are set up....which will take about an hour)