YOu have to remember that the reason some hosting companies are very cheap, is because they put limitations on all thier services. Such as 1and1, which puts rediculous limits on everything.
If this site was still on 1and1 it would not be able to function, as it has already exceeded their maximum database size, and constantly exceeds the amount of port allowences they have. It is also soon going to exceed their maximum sendmail limitations.
In short, if a hosting company seems to good to be true, it probably is.
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