Hi,
I think the cheapest way I found for a start up is to run your own systems from your home on a business class dsl plan if it is available in your area. You would need to have either linux or windows server experience too.
I ran two servers from my home for 3 years and had around 240 clients. I think I was paying $70 a month from speakeasy.net The business plan allows you static ip's which is essential for hosting. I'm not sure if a reseller or dedicated server can beat that cost.
