Just found another low-end/cheap VPS provider. HostInEuro has a low end plan “VPS 50″ that’s 4 euro a month which gives you:
64MB guaranteed memory/256MB burstable
2GB storage
50GB data transfer per month
OpenVZ
CentOS, Debian, Fedora Core, Suse, Ubuntu, Gentoo
From the “About Us” page it looks pretty well established. The servers are in Avaya Databurg Datacenter in Frankfurt, Germany.