[rab] How about hosting in Edinburgh? Though you'd probably want to traceroute them to find out if it's really close to you in terms of network hops; I'm three miles but 12 hops and 85ms from mine because of a lack of local peering between carriers, but your situation is likely to be different. Very low latency could be handy for maintenance; you could just mount drives remotely.

(Though it's not clear from their site that they offer Xen in their Embra facility, you'd have to phone to find out. And I'm not vouching for them as a provider -- I know nothing about them.)

[Dan] That company was on my shortlist of two. Haven't got round to emailing them yet, but I'll ask if they host Xen in (or, if my hunch as to the actual location is correct, near) Edinburgh.

128 should be fine. I run an identical setup at home on 128MB Xen server, and by far the biggest memory hog is mysql. Here's the memory footprint, 12 days since the last reboot:

dan@flint:~$ free total used free shared buffers cached
Mem: 131252 110836 20416 0 4632 38480
-/+ buffers/cache: 67724 63528
Swap: 131064 2228 128836

Those are pretty healthy numbers -- just enough swapping to indicate that it doesn't have more memory than it needs, without being significant.

Yikes, looks like you're discarding newlines. Okay, look in the chat game on mcios.