I do have an 1&1 virtual server, where Moodle 2.8 works fine!
You can check it out on http://easa66.info/moodle
It works fine on all platforms like Windows, Macs, Linux, including tablets and smart-phones, and with all kinds of browsers.
They provide you also with an installation program for moodle!
It uses a CentOS-6-x86_64 and with Plesk you can install moodle without any problems!
You can back-up your system with Plesk or the Cent-OS!
So, I do not see any problems!
Cheers
Otmar
PS: On Webspace you have problems installing moodle, cannot install it, as you must not locate moodledata in the www-Area!