James farmer has posted a great tutorial over at WPMu.org that takes you through the steps of setting up a WordPress Multi-User installation on a cheap, external webhosting service. He focuses on one webhosting service in particular for the demonstration, but most use CPanel and his instructions work pretty much across the board. That said, it is a good idea, no matter who you use, to find out whether they are cool with WPMu and dynamic subdomains–which I strongly recommend. Also, I would use this as a test space, running a full version for 7 bucks a month may be a bit sketchy–although we did it for six months 
Nonetheless, the video is an amazing resource that empowers folks who are interested in experimenting with this app to up and do it themselves. Imagine, you can create a dynamic publishing engine within minutes for pennies.
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