I think we need a sticky thread for hosting - local/abroad, Windows/Linux, etc. This question pops up far too much, and I'm tired of chasing everyone around - I mean, obviously everyone has their choice.
Case in point. I use Circle Hosting (link from my site in-sig) - Windows based with MS-SQL, .Net 3.5 - and they offer local hosting as well. Good service, good prices. That's just my opinion though. Whaddayasay?