LAMP
I use Debian and CentOS as a server and have liked both. I only use a windows server (WAMP) to test scripts on my local machine. If you want to use your home computer, just set up a nix box, throw debian on there then install LAMP, configure, restart, use.
As far as buying hosting, I would go with a VPS as it gives you more control over your server, but you can buy a shared server for like $2+ a month. Decent VPS's usually go around $15/mo