Depending on the kind of site you want to have, the $1.25 a month option MIGHT be right for you. This is good if you want a blog, static HTML site for affiliate sales or just a personal website. However, you are going to be on shared hosting. While the 99% uptime is guaranteed, your site will likely be slow sometimes if the other sites shared on your IP address and server have good traffic.
I would go with the $3.25 unlimited shared hosting package if you intend to build a very feature rich site with a lot of traffic and many posts. 2GB storage is not much if you have a large site, and 10GB of bandwidth will surely not be enough if you have a feature-rich site... If you are going to be on shared hosting, always make sure you get an unlimited package.
Also, I will recommend TMD hosting which uses cPanel and has all of the features on weblogmaker. Shared hosting is about the same price, but you also get a free .com domain name when you sign up.
What is the value of your website to you?
In my case, it is responsible for almost every dime I earn. I am certainly not concerned with saving a very small amount of money with some dirt cheap hosting plan.
I run a few web sites, some money making sites, some for local organizations (non-profits) and some just for fun. Given the work I put into the sites, saving a couple bucks on a hosting package is the least of my concerns. Ease of use, technical support and features are all more important to me. I use a couple different hosts depending on the need of the site.
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