Do you need a control panel with this VPS? If you will be running proxies, even though they are private I would not recommend 128 MB ram. That is to low. Your budget is also low and will need to be raised to at least $25-30/month.
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a VPS with 1-2TB bandwidth ( assuming you will use all that bandwidth) you will need to increase your budget, cost for 1TB can cost $20 or more, most VPS provider when they advertise high bandwidth limit, they often think that probably 1-2% of clients will use that much, and if they find out that one client is really maxing his limit, then they may tell him to move to another provider
OpenVPN / PPTP / Socks (either standalone or over SSH) runs BETTER, FASTER and more STABLE on Linux.
If you dont need ASP and/or IIS and/or Remotedesktop (though that can be done on Linux too) and/or Windows Programs (that wont run in Wine) linux is always better:
Uses less ram.
GUI can be completely turned off (can be on Windows too, but wont run well)
No weekly reboot due to updates.
FAR less security holes.
Better usage of available ressources.
No licensing costs.
I also reported you to Microsoft, offering 7$ Windows 2003 VPS is not possible with the current licensing costs - so you either use cracked windows or something similar.