A shared host isn't going to give you very good performance. You could try looking into http://heroku.com to see if that would serve you better.
Otherwise a VPS from Linode should serve you well and it's not too much money this way either.
Otherwise a VPS from Linode should serve you well and it's not too much money this way either.
Also i wanted something cheap which i guess for rails 3 isnt going to fly. Ill look at linode though.