Since we've started our company in 2003, one of the first things we did, was purchase a server and started hosting our own websites. Main reason for this was all the permission issues and safe_mode problems on most hosting servers.
Our servers are configured in a way that you will not have those issues anymore. We're running php using su-exec, meaning that php will run using the same rights as your FTP user. In that way we're avoiding permission issues and the need to set folder rights to 0777 to be able to install components etc. Installing Joomla is simply with the advanced script installer on the server. You have Joomla up and running in two clicks. The same goes for Joomla upgrades.
At the moment we're hosting over 200 sites on 2 webservers and one database server. Besides that, there are a few dedicated server customers renting servers from us.
Please check out the website of our sister company: Bandhosting.nl for more information on available plans. Plans are available from 2,50 euro per month. We can handle your domain registration as well.. see the list of available domains here.