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i run one site that gets 700K unique visitors/month (Time4Learning.com) and it happily sites on a shared server (actually, a limited number of us sharing. Maybe 5).
I have another site, which uses Joomla and some tricky audio and flash work, that keeps seem to be creating problems. It's spellingcity.com. It seems to open an awful lot of database connections and then we max out. Volume is 100K visitors/month but some users pull alot of files. Once we finish closing memory leaks and being sure to close our db connections, we might look at a dedicated.
But mostly, shared is the way to go. At a reputable hoster, not an airbag.
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