Thanks for all the input, this has been fantastic. I decided to go with co-location, especially after talking to a few providers. I normally see pricing around $250-300 for a co-location, which is one reason I was looking a doing it in-house since supplying my ownd bandwidth seemed to match that price. Pretty sure that price is because you have to rent the servers from them.
By "rent the servers" are you referring to dedicated? For $250 - $300? Wow! Where were you looking?
Webpipe in Ogden has dedicated hosting from $59 - $149 [1]. Their colocation service is $69 - 159 [2].
ValueWeb in Texas offers dedicated for $59 as well [2].
[1] http://www.webpipe.net/services/webhosting/dedicatedhosting/ dedicated.html
[2] http://www.webpipe.net/services/webhosting/colocation/colo.html
[3] http://www.valueweb.com/dedicated/pre-owned_servers.htm
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