I have one from hostineuro with 512mb ram. For 10euro hosted in Netherlands.
Working fine for last 3 months.
I use Hawk Host and its the best host currently around. Every plan of theirs is priced at a very low rate, i also suggest you obtain coupon codes from webhostingtalk.
Follow me on Twitter: @hendricius
I believe that it's better to pay some more but receive quality and stable VPS
They have nice feedbacks on the web
I would worry about lack of support/reliability for plans for VPS that are cheaper than fully-supported reseller hosting.
Why go for such low cost VPS such as $5? What is it that you need to do that requires VPS? I'm mainly curious.