Until recently I was paying $35/mo for a dedicated Pentium 133 with 64MB RAM, 2GB HD and 5 GB of transfer per month. I am not joking about the specs.
I used it for secondary DNS but in the end it wasn't worth paying $35 when I could get a P4 2.4GHz with a decent sized HD and oodles more transfer for around twice that monthly fee... the latter server could do a lot more than just DNS...