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Turns out, though, that it wasn't so simple. First of all this particular host did about as good a job as anybody could at irritating google (he was selling page rank!). Second of all, the banned site had at least one link to his host (the offending site) - and we all know what happens when we link into bad neighborhoods....
Finally, the banned site wasn't included in his profile so we don't really know if he did anything else wrong.
To sum up, don't worry about getting in trouble with google because of where you host.