Dedicated Linux Hosting

Self-Hosting vs. VPS: which is right for me?
I have two hosting needs: PHP and Rails. I’ve had (a bad) experience hosting a PHP site on a shared server. I’ve also briefly run a simple PHP server for a hobby site with low-availability standards.
Now that I’m considering running a serious, large site (Ruby on Rails), in addition to a few small existing PHP sites, should I host myself, or choose a Virtual Private Server?
* I have a 3.0GHz P4 / 1GB ram machine I could dedicate to hosting.
* I am familiar with general computer security principles, programming, and Linux
* I have a Comcast cable connection (no static IP)
* I can’t imagine spending much more than $50 / mo. to start.
I’ll add any details you consider relevant.
I recommend http://www.slicehost.com