We'll its time our business finally moved off of the Godaddy $30/month VPS server. We're setting up an eCommerce site with X-Cart and need a better server. Rather than paying $80 or so per month for a good VPS, we're considering buying a server (maybe a Dell) for around $1000 (Dual Core Xeon, 1gb ram, 80gb HDD) and running it off our Bell Business High Speed Ultra 6mb package (with dedicated IP) at our business. I'd likely install CentOS and a free control panel.

What are your thoughts on doing this? The site isn't super busy and we don't use much bandwidth. Would our customers likely have speed issues with the site if we ran off our own connection? The connection is 6mbps down and 800kbps up.

800kbps up is going to be a bit of a limitation. You'll have to bear in mind that your connection's probably contended as well (that is, you share the line with others) so you may experience drops in speed during busy periods.

What sort of content does the site host?

It will be an X-Cart based website. Pretty basic e-Commerce content I think. I'll be honest, its not a busy site. Right now we go through a gig of B/W per month. I want to get off of Godaddy so I either move to a Spry VPS for $80 per month, or buy a server which would cost the equivalent of one years hosting bills.