I spend more time designing web sites than I do shooting these days - for general hosting, avoid goDaddy like the plague. HostGator is really good general hosting for the $$. I use web space for sites and FTP, and smaller-sized QT's or FLVs, but Vimeo is indeed useful for client viewing. You don't have control over their compression though; I've used standard shared web hosting to show SD sized content to clients, but you usually have to tell them "let it load for a bit". They're generally used to that from being web consumers though.
One good thing about using an HTML based page to preview for clients is you can add plenty of notes, or build a quick SWF interface to show options or storyboard in sections for ideas. (If you've got a basic handle on flash).