To put it in easier terms, shared hosting means every account on the server share the resources while for VPS, each account is allocated a certain amount of resources for itself.
VPS, means virtual private server. A dedicated server is split into virtual servers using software like virtuzzo. So that each VPS acts like a dedicated server. You can install any scripts or softwares you want on the VPS.
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what about clustered servers vs. dedicated servers?
Clustered Hosting means that the traffic is spited among many servers. In case one server fails or become unstable traffic will be to transferred to an another available server, preventing downtime for clients websites. On the other hand Dedicated Hosting means that having your site on a single server, but if this server fails, your sites will go down as well.
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