[duskwuff]

$7/month for 1GB is beyond just oversold -- at that price, it's probably an outright scam -- e.g, the server was stolen, your memory is all swapped out, /proc/meminfo is lying to you, or something of the sort. prgmr.com is one of the cheapest VPS providers I've ever seen, and $7/mo only gets you ~192 MB with them. While I'm sure they do leave some room for profit, it beggars disbelief that anyone can provide actual service at a third of their (already low) prices.

[IgorPartola]

I have had my share of cheap VPS's and in my experience you can find good value at $7/box. Rule of thumb is to go with Xen PV and to always pay monthly. There are some exceptions. For example BuyVM has a $15/year offer for 128 MB that is not oversold.

[toni]

Not only are they oversold to the extreme, but majority of them only offer OpenVZ. As opposed to prgmr's pure Xen approach.