Hosting services

[jonswinfield]

Hosting services seem to have assumed more importance than ever. I want to know about the various differences between virtual shared hosting and dedicated hosting services. Is anyone aware of it? I believe quality hosting services are beneficial for websites. How do you go about choosing the right one?

Someone told me that when it is about shared hosting services, a lot of sites share a single server machine with a single IP. As far as dedicated hosting is concerned, one machine is dedicated for a single customer.
Is this right? Can someone shed light on the same? Thanks a ton in advance!