RE:
We offer a hosting plan for $4.99 per month as well, but you don't get nearly that much space, bandwidth or features. Hosts that offer those kinds of prices don't last long. The hardware, bandwidth and support prices that you need to pay out as a host to support that kind of plan is much more expensive than $5 per month - if you do it right. If you cut corners, or hope that your customers don't use much of anything (ie. oversell) maybe you'll last a while. Maybe...
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Everything is shared in the same pool. Some use hardly anything and some use more. When we notice that we are reaching the limit for one particular server, we simply set up a new server. Try to ping our site and you will see how fast it is (it is hosted on the same server as most of our clients). Most of our customers signed under Plan 1 hardly even get their bandwith up to 25 MB/a month and how many sites exceed in 10 MB when it comes to storage? This has worked fine for almost 2 years and we have had ZERO complaints about our resources.
Have a good one!!