You said you had an 8mb line available for use from home? Is this a home fast access service? If so (and this may have been mentioned before, but it's late and I can't read the whole thread
). If it is keep in mind that's "UP TO" 8mbps DOWNLOAD speed. I'd bet your upload speed is only "
UP TO" 512kbps to 768kbps. Know that your upload speed = your site visitors download speed. So if you had any number of concurrent users utilizing your site at one time, this could quickly bottleneck your internet connection making a poor user experience.
My advice would be to use a hosting service. Once you buy that server... you own it and you have only you for support. If you have the time admnistrating and troubleshooting your server as well as creating\maintaining your Moodle site, then maybe thats the way to go. When you have a hosting plan, you are paying not only for the web space, but for their tech support, backups, network and power redundancy etc etc etc.
I'm a network admin by trade and I am moving all our web presence to a web hosting provider for the reasons above. I'd rather use the time it takes to admin the web servers to plan and execute other things.