Rackspace was my early favorite although in the last six months that has changed.
Pros:
- Easy to use and intuitive interface
- Tiny VM choices down to 256MB
- Good customer service
- Good Prices
Cons:
- Resizing VM’s is slow
- Backups don’t always work
- Slightly buggy VM interface
- No extra disk options at all, everything is in lockstep with RAM
- Limited choice of high-end servers (cores/RAM)