I’m seeking new hosting offering a decent multi-domain package and maybe some instant Wordpress and Drupal installation and PHP5. Also 5 or more databases would be cool although not as major. Any recommendations?
The ideal solution would be VPS. Bit I’m sure that will not be a problem to host your stuff on shared web hosting account.
Maybe you need to check web hosting deals first? (the forum section on sitepoint)?
I think you will be able to find some decent web hosting providers there
A VPS would be overkill for a new set of sites IMHO… I would go with a quality shared package at a reputable provider and then upgrade to a VPS once your actual usage justifies such an upgrade. Not only will it save you some headaches but it will save you some money too.
What is your curent web hosting account specification?
Like Mike, I see nothing in your requirements that would indicate a need for something more than a regular shared hosting account. Most hosting offers out there should do the job, on paper.
Just do your research on them, so you don’t end up with a dud, as the offer and the actual service can be two totally different things: htpp://webhostingtalk.com/search.com, http://www.sitepoint.com/forums/search.php
Typo Correction: http://webhostingtalk.com/search.php
htpp = http and search.com = search.php 
Were you sleepy when you wrote your post Dan? 
I should not have been judging by the time in the day. I was probably in some kind of a hurry. I really don’t recall. 
Thanks for the correction!
I’ve got one domain, one hosting plan that just upgraded to PHP5 and offers pretty limited amount of hosting space (500mb) for about $15 a month.
No problem