Can't speak for Arvixe's quality, but for $10 more than their VPS plan, you can get a 1GB VPS plan from DreamHost, an established hosting company with a good track record, also with unlimited storage and bandwidth.
Media Temple is another popular web host, and their 1GB VPS plan is also $50/month (or $41/month if you pay yearly). However, they limit storage to 40GB and bandwidth to 650GB.
You might also want to look into Amazon EC2. With EC2, Media Temple and DreamHost, you can also scale your hosting plan as needed. That could save you money as well as ensure your app has room to grow (and won't die when there's a sudden traffic spike).
If you want a true dedicated server (very few reasons for it these days), then it's going to cost you a lot more ($105+/month for 1GB at Arvixe, $89/month for 4GB at DreamHost). However, DreamHost is currently running a special for $69/month if you sign up for a full year's hosting. I think that's just for the first year though.