ConnectSwitch, a UK based VPS hosting provider started in March 2008, has some pretty cheap HyperVM/OpenVZ based VPS to let. For £3.95/month (~USD$5.83 thanks to weaken GBP), you get:

• 128MB guaranteed / 256MB burstable memory
• 20GB storage
• 250GB/month data transfer

Two data centers to choose from — either Bluesquare, Maidenhead, United Kingdom or Avaya Databurg, Frankfurt, Germany. There’s also currently a 25%-off promotion (via this WHT offer), which makes even the next available plan (256MB/30GB/500GB) to fall under our $7 threshold (USD$6.59/month).