If you're looking for an affordable way to run NewsCloud, we've just released an installation script which works great with Rackspace's $45 monthly 1 GB cloud server. It also should work with any standard Ubuntu 10.04 server.
While this installation script is primarily aimed at open source developers, by the end of June we plan to offer an automated Chef-based installation which will drastically simplify this process for non-technical folks.
You may want to review our installation support FAQs which offer a checklist of setup prerequisites. Three things you'll need to run your community are 1) A domain name or subdomain 2) Registration for a Facebook application and 3) a server for hosting, such as at Rackspace.
Please let us know if you try out the script. Post your feedback and questions at http://support.newscloud.com
This work is funded by our May 2011 Knight Foundation grant: NewsCloud to Make Facebook-connected Communities Easy and Affordable.