I haven't heard of them before, but I have learned a quick lesson about VPS providers: most of them are one-man operations that only last for a few months. I have done a LOT of research on VPS providers over the last couple of weeks and the one site I always end up turning to for advice on providers is Low End Box: http://www.lowendbox.com/
I did a search for VPScolo on LEB and found an ad from 2010. So the fact that they've been around for at least 2 years is a good sign. You don't get a whole lot of resource though. So far, I have only found two VPS providers that give you the most resources for your money. If you need bandwidth, go for RethinkVPS. They offer unlimited transfer. If you need more memory, look at ChicagoVPS. I got in on a good deal with them: 2GB of RAM, 2TB of transfer for $7/month. As for the burst, you have 256 MB of RAM. The burst is like swap space. It is there for temporary usage only. Many providers provide you with burst memory in case your site is listed on Reddit or Slashdot and experiences a sudden spike in traffic. If you are eating into burst memory often, your provider will make you upgrade to a better plan, or ask you to leave. So make sure that 256 MB is more than sufficient for your needs. As a quick note, I am not associated with VPS providers. I was looking for one recently, so I started doing my homework for a provider that met my needs. I should also mention that these are cheap plans, and are a step up from shared hosting, but they are not going to be as high quality as a provider such as VPS.net or Rackspace, etc. So there will be some downtime every now and then.
