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I'm going to disagree with xuroq. That number of users can definitely support going with a VPS.
Plans start at $25/month with JVDS and $20/month with Slicehost. 300-400 visitors a month should get you $30-$60 from someone like textlink-ads.
Besides, there are other reasons to go with a VPS.
You own your instance: you can log in as root, you can install any version of any software you want. You can experiment.
Like cPanel, install it. Hate cPanel, install an alternative.
You can learn quite a bit about managing a server.
You have absolutely no limits on the number of hostnames, email addresses, login accounts, etc.
The downside of course is, you have to manage everything. If something goes wrong, you'll only have yourself to blame. You are your own tech support.
Then again, how responsive do you think a provider is going to be on some cheap $5/month plan? They lose money the instant they answer the phone. Just reading your email about a problem costs them more than you are paying them. Good service just isn't economically feasible for a company on really cheap plans.
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