I am looking to start a new blog, now this will be a busy high traffic one in no time but am worried about the hosting as WP can take up some resources..

So I am wondering who here has a high traffic blog (5k+ a day) or has survived a digg and what host you use?

*I do have my own dedicated server right now but it has 4 high traffic sites on it already so don't want to add to it, and apart from getting the same server (which I pay $400 a month for), I am looking for a cheaper alternative for my new project.*