koding.com has a free VM running Ubuntu. The specs are pretty good, 1 gig memory for example. They have a terminal online you can access through their website, or use SSH. The VM will go to sleep approximately 20 minutes after you log out. The reason is to discourage users from running live production code on the VM. The VM resides behind a proxy. Running web servers that only speak HTTP (port 80) should work just fine, but I think you'll get into a lot of trouble whenever you want to work directly with other ports. Many mind-like alternatives offer similar setups. Good luck!
For free, you'll be getting one micro instance, 5GB of Cloud storage. There are 15 total Google services which you'll be able to run without paying anything. This VPS is made for people who want to build. It's not the place if you wish to make a WordPress blog. But it's ideal for those who want to use Google's vast resources to make something brilliant.
The main reason that someone signs up for a VPS is that they need a server through which to run their site. When you adopt one, you should notice that your site is performing better than it was on a shared account (because of the guaranteed allotment of resources). Also, the full root access gives you better control. You are able to install and get rid of whatever programs you want.
If you register a domain with Bluehost when signing up for a hosting account, there is a domain fee that is non-refundable. This not only covers our costs, but ensures that you won't lose your domain name. Regardless of the status of your hosting service, you'll be free to manage it, transfer it after any required lock periods, or simply point it elsewhere at your convenience. You retain ownership of your domain until the end of its registration period unless you elect to extend it. 
You may also think that since you've customized your VPS, that you're stuck with the resources that you originally selected when you created your account. That's not true either. If you need additional resources after signing up for your account, that's just a sign that your site is growing. It's a sign of success. You shouldn't be penalized because for this success. That's why our VPS plans are completely scalable. Just contact our support team when you need more resources and we'll be happy to help.
We strive to offer you a 100% worry-free hosting experience. How? HostGuard Management is included with your VPS. With HostGuard, our 24/7/365 Guru Crew Support team manages your account's network, hardware, software and security. You won't find this level of service with any other provider! HostGuard means you can focus your attention and building your site and promoting it to your audience.
You can easily customize the network configuration for your Amazon VPC. For example, you can create a public-facing subnet for your web servers that has access to the Internet, and place your backend systems such as databases or application servers in a private-facing subnet with no Internet access. You can leverage multiple layers of security, including security groups and network access control lists, to help control access to Amazon EC2 instances in each subnet.
We regularly examine customer bandwidth and disk space utilization data in a series of statistical analyses and use the results to define "normal". Although these tests vary from month to month, one thing remains constant: 99.95% of our customers fall into "normal" range. If your account's bandwidth or disk space utilization causes any concern, you will receive an email asking you to reduce usage. We strive to provide at least 48 hours notice to allow customers to make adjustments before we take any corrective action.

Virtual Private Server Hosting or VPS Hosting is essentially a dedicated server within a shared hosting environment. With VPS Hosting, each customer can run their own virtualized operating system within a partition of a dedicated server. Even though multiple customers are on the same physical machine, VPS Hosting allows each customer's account/website to have all the capabilities of being on their own separate machine. This type of hosting offers advanced performance and flexibility with the ability to customize at an affordable price.
A VPS Server is the reasonable web hosting choice for your domains when more system resources are needed. VPS takes of the virtualization technologies to partition physical servers into several virtual machines. Virtual Private Server Hosting is the future of modern hosting as it provides the power and functionality of a high-end dedicated server but at a much lower price. Main virtualization technologies used including Vmware, OpenVZ and XEN etc. By purchasing a VPS hosting package, you get a 100% individual machine with your own dedicated CPU and RAM, and mostly root access to the hosting server. Each Virtual Server can run under its own operating system (Windows server, CentOS and other Linux distributions) or have custom configurations of its own.
Amazon VPC provides advanced security features, such as security groups and network access control lists, to enable inbound and outbound filtering at the instance level and subnet level. In addition, you can store data in Amazon S3 and restrict access so that it’s only accessible from instances in your VPC. Optionally, you can also choose to launch Dedicated Instances which run on hardware dedicated to a single customer for additional isolation.
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