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Deploying PostgreSQL on virtualized hardware

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In a couple months, I'm going to be considering how best to deploy an application I have that uses PostgreSQL as its back-end. It also makes heavy use of Perl under mod_perl and UMN MapServer with a sprinkling of PostGIS.

I've recently become intrigued by the idea of virtualized servers [0], but I don't know anyone who uses them, so I thought I'd ask the list if any of you have tried deploying PostgreSQL or any other disk-heavy software on them?

I'm not familiar with how the virtualized disks are arranged, how volatile the memory is, and so forth. And, unfortunately, the advertising folk don't seem to be very keen on divulging the technical details.

It would certainly be nice to pay $60 per month for eight virtualization slots and scale up from there as the service grows, rather than buying $10,000 worth of servers when they won't be even close to fully utilized for a several months.

Any thoughts?

Thanks.

Colin

[0] eg. http://www.gandi.net/hebergement/offre/xen/

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