Any advice on starting a webhosting and computer consulting business?

I have a friend of mine who has offered to set me up with a linux-based VPS, and was thinking of starting a webhosting business with this? In addition I was thinking about doing some consulting like setting up servers for small businesses, setting up home wireless networks, and PC repair? Any advice?

I have been self-employed as a systems engineer for over 3 years and the best advice I ever got was don't undervalue your services. It is much easier to give discounts than it will be to raise your rate in the future. Bill for every minute you work and then add lines to your invoice like "New customer discount" or give them a discount if the hit a certain number of hours each month/quarter/year. Be confident in your skills and what they are really worth. Don't give it away. Let them know why you are giving them a discount. The second best advice I got was "A value that is not recognized is no value at all." In other words, if your clients don't know that you are doing something special for them they will come to expect it. List everything you do on your invoice. The final advice is to form a LLC or a business entity that will separate your work from your personal life. If for some reason a client wants to take legal action they will have to take it towards your "company" not you. They cannot go after your personal possessions. Self-employment is awesome! I will never go back to working for the "man". I wish you the best of luck.
I hope this helps.