I'm having a very hard time finding a modern Windows server to either use as a reseller account or that monthly fees are very low allowing for many sites to be run at a low cost.

Requirements for the server:
.NET 3.5
Multiple SQL Server Databases
Remote Connections for SQL
IIS 7

Must allow Reflection and LINQ

The rub is, I have multiple websites that take advantage of a lot of the new functionality allowed in .NET 3.5, but after a ton of research, I can't find hosts that are up to date enough to allow for this functionality.

Anyone had any experience with these types of hosting companies or have any recommendations?

There are many windows hosts offering .NET 3.5
And i think LINQ is part of .NET 3.5 framework.
You can use this link (http://www.webhostingtalk.com/hostquote.php) to request quote from hosting providers

liquidstar-
Did you checked the offers' section? You can find good deals by some of the web hosts offering .NET 3.5 + MS SQL 2005. Please be sure to read the reviews of the hosts that you shortlist.

Good luck!

HI

you say you want IIS 7, not many hosts will have IIS 7 just yet as its so new! however ASP.net 3.5 works just as well on IIS6 as it does on IIS7.

You may want IIS 7 if you're trying to do something with the Microsoft MVC framework.

You could do it with IIS 6, but 7 makes it less painful.