Wrong. FS with Defcon1. It's not unmanaged, yet there isn't root.
To topic starter: If you decide to go with VPS, go and look at Dinix and ServInt. Both are great companies, and with VPS you'll have no problems with them.
For dedicated servers, well LiquidWeb and FastServers are both great companies. LiquidWeb is fully managed, and very affordable. FastServers is very good as well, and for an extra $100 can be fully managed (However there won't be root with Defcon1, however Defcon2 has root).
But, are you able to managed your own server? If not, it's best to go with a managed provider such as LiquidWeb or FastServers with Defcon2 or Defcon1. Otherwise, ThePlanet/ServerMatrix and EV1Servers are both very good places.