Another hosted service- I wonder if any universities use it?

ULCC (University of London Computer Centre) can run a Moodle service on behalf of your institution. Our services range from hosting on-line courses on a shared platform through to a complete package of advice, training, design, and deployment. There are many advantages to choosing ULCC over an in-house solution. ULCC has wide experience in hosting and evaluating VLE systems and offers security, connectivity and a formal service level agreement.