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Define "large". How many users online at the same time?
Hostgator's shared hosting is in that budget bracket. It's not really designed to host big forums, but I think you should be able to a 50 average users online level, possibly more, provided you don't use resource hog addons like say shoutbox.
A VPS, especially an entry level one, is more of a way to gain better control over the hosting environment of your site(s), than a way of having more computing resources at your disposal. Cost wise, a VPS comes with management and licensing costs. If you're not a server administrator yourself, you need to get a fully managed one.
There is shared hosting out there that costs significantly more than the ~$10/month that Hostgator charges, and it should be able to sustain bigger forums, if yours fits the definition.
It's always good to discuss your needs with the prospective host (scripts used, traffic levels, average and peaks), and have them advise you on the route to take.
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