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I wouldn't go for the deal.
1. Pre-paying for a year is ridiculous. Good way to get screwed if there are problems with the server. Suppose after 4 months, you realize that this server really sucks (downtime, too slow, whatever) you are tied down to it because you already paid for a full year upfront.
2. $500 a month for 150 gigs transfer is about 3 dollars a gig, which is too high. Overages at $2.50 a gig is also a bit high. You are paying about $500 for .5 Mb/s line. For that price you could get a 2 Mb/s line which would give you 600 gigs transfer a month.
There are better deals out there, with hosts that don't require upfront payments and have less expensive bandwidth.
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