I recommend Hetzner too, but I want to point out that traffic is not free. When you exceed the included traffic (something like 20-50TB IIRC) your connection gets throttled unless you pay 1,2-1,4€/TB.

That's a good thing though. Traffic does cost money and all those providers offering unlimited traffic will start emailing you once you generate significant amounts of traffic anyway.

Edit: Just to put that into perspective (since most people here are talking about the price of the server). If you buy a affordable server for 30-40€/month and you saturate the 1gbit/s NIC 24/7 you end up paying over 450€/month. If you buy a more expensive server (75€/month, 50TB traffic included, 1,19€/TB extra traffic) you save at least 100€/month. I guess what I'm saying is worry about the price of the traffic not the price of the server.

Edit2: My math is all wrong. Anyway if you need lots of traffic buy their regular servers instead of the auctioned ones, you will save money (more like 50+€/month, but still).