That's not good of the host to say that it's a dedicated then it's a VPS and then explain it away as being that the VPS is on a Dedicated. Well OF COURSE the VPS is on a dedicated machine - there's no other way to operate it
I'd offer reseller hosting to you however we don't have any reseller plans, we only have shared hosting (which are on real dedicated servers) or we resell VPS's which people would then use as a RESELLER account of their own.
Unbelievable that you're getting the runaround from these other guys. You may want to evaluate funds and go VPS for yourself or get a low end dedicated server for yourself.
Datahosts.com (a sponsor here on the forum) offer Reseller accounts, but I didn't find anything saying if it was on a regular machine or a VPS.