I use GoGrid for running a Windows Server 2008 instance with IIS7 and SQLServer2005 Express. Been using them for 3 months now and happy with service so far. As you have control over the server you may be able to install SQLServer2008 Express instead??
New server instances are simple to setup and run. They charge per CPU hour with lots of different configurations to choose from. You can't yet bundle/save your instance (with the changes you'll make as you manage and patch your server) like you can with Amazon. I think this feature is coming soon though.
Also happy to recommend ORCSWeb though it's been a couple of years since I used their services. They provided a great service for the database-driven sites I hosted on them in the 3 years I used them.