I too, use godaddy and the proxy service. Best deal going for the price, and I have only had to use their customer service twice (both by my own error!) and they were polite, and responsive, and kind when they told me to be more careful!

For the hosting I went with a local hosting for my email and site hosting. Nothing fancy, but I didn't need fancy. And for 10.00 US a month, it was a good deal for me.