"I am a small web host, that had primary services hosted with VAServ and I expect that if I am not on-line within another 24 hours, I will have to dissolve my company.
I also know another person who's entire hosting infrastructure has been compromised and taken down by this attack.
I am surprised that they did not mirror data on their servers, and do understand that the challenge they face now to restore that many websites and servers. Is indeed no small job."
If your time line is only 24 hours from when you posted I take it you made sure your SLA with them for restoration of service was well within this time-frame when you signed up?
I doubt you did and I can have very little sympathy for someone who appears to be sent under by this because they failed to address the issue of tail events and business continuity.