Can anyone tell me a good banner exchange site or hosting directory?

Hosting directories:
http://dmoz.org/Computers/Internet/W...g/Directories/

imho your best bet would be to become an affiliate with a site which has a decent ranking (www.alexa.com is a good way to see usage statistics). It is hard to start off a site though with no paid advertising ;\ ... You get what you pay for.

I don't really like alexa because their rankings are not accurate since they only get their reports from people who use their toolbar.

Hosting directory -- way too many web hosts competing, and if your budget is tight, chances are your ad will be small and will be amongst the flood of other web hosts.

Target a specific market -- say, people who are looking for a host for their blogs, or photo albums. Then look for web sites that cater to these kinds of people. Advertise there.

Advertise where other web hosts aren't advertising. (hmm... what a concept)


JP