I use both EV1servers.net and theplanet.com (now owned by the same company but still operating separately). Both do have $69 servers if you don't need much power but there are limitations on that that might get in the way (10mbit upload for example). Otherwise you're back to the $99 level, although you do get more for your money than 1&1.
Also depends how "managed" you are looking for - normally managed servers don't come with root access and vice versa. With root access servers the hardware & network will be managed, but otherwise you're essentially on your own.
A cheaper option would be to use a Virtual Private Server - where you have multiple separate "instances" owned by different people running on the same physical server, bit like Virtual PC. As always, there are drawbacks since you are sharing resources with other people, but they are much cheaper - EV1 have got them starting at $39/month.
