> I'm working on what will end up being a large, high-traffic, multi-
> site project. Currently we're just using a basic Webfaction account
> for hosting during development and testing, but I'm trying to figure
> out what would be the best approach to hosting moving forward.

You can probably stay at webfaction. Their shared accounts can handle
quite a bit of traffic and if you outgrow one shared account they can
load-balance your site between multiple shared accounts on different
machines.
They also offer dedicated servers although they are more expensive
than "bare" dedicated servers because they are managed by webfaction
(IMHO the convenience is worth the extra price).

Kevin.
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