As evidenced on sites such as Lowendbox it is becoming increasingly possible to host powerful websites using the latest open source technologies for only a few dollars a month.
This is my low-end box experience as it develops. You’ll need to get your hands a little bit dirty to follow along, but nothing too complex.
Hopefully by the end of the journey you will be able to set up and leverage your choice of web technologies to power any number of dynamic websites on your little VPS.