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Heroku will also host node servers, 1 dyno for free.

They're a popular host for hubot, github's chat bot, which runs on node.

Have you looked at http://nodester.com/? It seems like a good place to start.

I had good experiences with nodejitsu & joyent - both are free for node.js still I think.

I have a node app running on linode for $20 a month. No fancy setup.

Cheap VPS from prgrmr.com is a good start.

prgmr.com