Can I setup java based linux daemon on HostGator VPS? If yes than how? What will be the procedure (any help or detailed article)? HostGator provides virtuozzo as the OS virtualization environment. I also want to know apart from virtuozzo how can I interact with the VPS to install, update applications and backend processes. Thanks
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A linux VPS looks exactly like a dedicated server, it just has fewer resources (the physical resources of the machine - RAM, HD etc) are shared between a number of virtual instances).
You can log in to your VPS using ssh, just as you would a dedicated server. You can then install, run, configure, hack whatever you like. Check with your provider (HostGator) for the IP address of your VPS and the root login details.

Richard
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Thanks a lot. Actually I posted this question on stackoverflow and just got to know that it has been posted to serverfault. Thanks again. – mhb Sep 16 '10 at 20:16
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Have a look at the new Amazon "Micro Instances". IMHO it is the best of both worlds: http://aws.amazon.com/about-aws/whats-new/2010/09/09/announcing-micro-instances-for-amazon-ec2/

MFauser
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1I think Virtuozzo based VPS will be better for most users. EC2 is too ephemeral. They have a nice API but lots of stability issues. For the same price you can get a much better VPS , virutozzo or openvz, which is a different virtualization technology than Xen. – Amala Sep 11 '10 at 13:24