I have heard that if you are on a shared server then if anyone uses bad SEO then you could be penalized. However, I don't know how valid that is.
I do have one site on a dedicated server. The host I'm with is hostica.com. So far, I am pleased with them. To be dedicated is like $2 bucks more a month so it seems worth it.
I'm on a 5 domain plan for $5 bucks a month. They have CPanel, Wordpress friendly, many more features, & responsive support (live & email). I would recommend them to anyone.
They helped me with htaccess, redirecting, & even file management.
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