At its most basic, getting an Internet project up and running requires two essentials: access to hardware and access to the Internet. Hardware and bandwidth are a major consideration in light of both the potential expense and the issue of quality of service. This is one of those areas where you can pay as much or as little as you like. There is a correlation between what you pay and the quality you get, but there are plenty of good deals to be found in the current market, so shop around.
Let's take one step back and make sure everyone shares some common ground, in terms of terms.
"Servers" are the hardware that holds and distributes information to people via the Internet. A small site may reside on a server with a number of other sites, a large site may require hundreds of separate servers in a variety of physical locations, all connected together and running as one cohesive system.
Servers can handle a wide variety of functions, from housing websites, to running mailing systems. For a quick rundown of server terminology check out the Webopedia server listing.
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