Orndorff
Like I said, proxy websites need a lot of resources, so that is why you don't usually find hosts that allow proxy hosting. The ones that do offer it, charge way more than a regular hosting account, but we have to accept it because it uses a lot of CPU as well. I know that at the beginning you don't have any money (or very few bucks) so getting a good hosting or a dedicated server is out of the question. Lucky for us that if you search hard you may be lucky and find a free web host that accepts proxies. These are really rare, but they aren't impossible to find. A free web host won't be enough, but it should cover everything in the first 2-3 month. In this period you have time to focus on advertising your website. You don't need so much space, but believe me that at the end of your 2nd month the bandwidth will be consumed. This is when you should start looking for a bigger hosting account. By now you should have some money (maybe not in your pocket but in your AdSense account). You should know now if the website earns. If it does, than move to the next step. Buy a paid hosting account. The specs should be about 500MB of space (even 1GB) and at least 20GB bandwidth.
Promoting your proxy
Setting up the proxy is the easy part. You have a good free script, a good looking free template, a free hosting but you still need traffic. If no one knows that your site even exists than it is useless. The first thing to do is submit it to directories. A simple Google search for "proxy directory" will return many results. Submit you proxy to every free directory until the 5th page of Google (this should be about 30 directories). Directory traffic isn't very much, but it is a good way to get some backlinks so the proxy will be indexed.
Once you have done that it is time to start promoting it big time. Go to Yahoo Groups, Orkut, MySpace or any other social networking website that has a "groups" feature and I am 100% sure that you will find at least 5 groups about Proxy Websites in each of those websites. Join them and promote your proxy there. Remember, these are the people that are searching for proxy websites. These are the people that want to know your site.
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