Thanks to abjr pointing out this XPLHost special where you can get a low end OpenVZ VPS for $6.36/month (after the 20% off discount). Here is the spec:
96MB memory guaranteed
7.5GB storage
150GB data transfer
CentOS + HyperVM + LxAdmin
Servers seem to be with The Planet in Dallas. 150GB makes it a small file/media serving box on the [...]
Comfy Host has some cheap VPS plans that fit into our low-end-box criteria. For $6/month you can get the following OpenVZ virtual server:
128MB guaranteed memory
256MB burstable memory
10GB storage
75GB monthly transfer
Los Angeles, CA servers
No info on which Linux distribution is available. As it offers CPanel so possible only CentOS is provided.
Update 2008-03-30: Comfy Host has raised [...]
Via WHT. For £3.5/USD$7 per month you get an OpenVZ VPS from VT6 Internet with:
64MB guaranteed memory
256MB burstable memory
2GB storage
50GB transfer
1 IP address
Choice of UK or Dallas DC.
Update: It appears that VT6 has redesigned their site and the Pearl plan is no longer available.