> house a server and charged me for bandwidth.  I would connect by ssh
to do 
> system administration.  The server would do email, web, and maybe
other 
> stuff too.  It wouldn't be a bandwidth hog because.

A co-lo is when your hardware sits on their network.  All they do is
provide power, cooling, network, and the occasional operator to press a
reset button should that be necessary.  You would be responsible for all
patches, backup, and other sysadmin tasks.  If you're not up to that,
then a managed server would be easier but more expensive.

Another option, if bandwidth isn't a factor, is to host it yourself on a
residential DSL or cable modem (at your home or a friend's).  This has
the benefit of putting the hardware within easy reach should that be
necessary.  Actiontech and Linksys routers have a "port forwarding"
option that needs to be configured.

Depending on your provider, there may be policies against re-selling
service, but I've never had any problem running a hobby server.  I've
found I need to relay email thru their smart host to get pass some
corporate spam filters.