I signed on to Lunarpages to host several secondary sites, after they were recommended by an acquaintance.  I didn’t have any downtime or email problems.   They could run a little slow sometimes.  I did have two issues:

1.  I hated their control panel.  The panel was very slow to load a lot of the time and while its simplicity may appeal to some people, I wanted a lot more.

2.  When I canceled my account, they refused to give me a partial refund.  For this reason alone I wouldn’t recommend them, because most companies will refund the part of your fee that you didn’t end up using.  Lunarpages just keeps it, even if you only used the service for two months – they keep the other ten month’s worth.

Otherwise it was an okay service and some might have a good time with them.  I wouldn’t use them again for the control panel issue but if you are absolutely sure you’ll be with them for the entire term you sign up for, you might not have problems.