space and bandwidth are almost entirely determined by traffic. if you have a busy site like this one then you will need significantly more than if you are seeing just a few users and not alot of traffic. Owens will probably share information about his server stats with you if you ask him.
Most likely you would be fine just leasing some space on a server somewhere, there are plenty of places that offer hosting like this. Usually they will allow you to increase your bandwidth/storage as needed, so go low and increase as needed. There are many places that offer hosting like this, i use these guys http://www.dtsinetadvantage.com/ you may find better prices or features if you look around.
i dont really know what you mean by getting your ass handed to you, but the best advice i can give you is back up everything. often.
"They who can give up essential liberty to obtain a little temporary safety, deserve neither liberty nor safety."
Ben Franklin
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