Anyone knows where I can find a service host for the following?

-Free or Cheap Shell access provider
-Linux/Unix flavors
-personal webpage
-CGI scripting enabled
-background process permitted
-running a proxy server permitted
-no need for pop3 etc.
-a shell access with telnet/ssh enabled will do.

I need to run an anon proxy server using privoxy or other scripts with custom filters.

Just look for IRC Shell Accounts, there are tons of them around.

try dreamhost