What sort of hosting are we talking about? Do you need a lot of storage, a lot of bandwidth, or both? And in terms of email what do you need? Do you need full access to pop/smtp/imap servers, or just somewhere to log in and check your accounts?
Without knowing the exact application it's hard to give specific hosts, but what I usually recommend for small operations is to talk to people in the techie scene in your area. You can usually find a grass roots operation, where a guy leases a pipe, sets up a server and starts charging. Generally it's pretty cheap and since it's usually some techie who's looking for a few extra bucks on the side, good tech support is part of the deal.
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I wake up in the morning more tired than before I slept
I get through cryin' and I'm sadder than before I wept
I get through thinkin' now, and the thoughts have left my head
I get through speakin' and I can't remember, not a word that I said
- Ben Harper, Show Me A Little Shame
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