This is partially correct. In our terms and conditions we state that no site may use more than 5% of the server resources. This is to protect the sites on any particular server from abuses by another site. In general we do not enforce that limitation when it comes to disk space and in other cases we only do so when the site in question is causing real problems. Most of the time we simply move the site to a different server to better balanace the load. In very exceptional circumstances we may recommend that the customer move to a dedicated server. However, usually in these cases the site has reached such a volume of traffic because it is distributing illegitimate material, in which case it is already not abiding by our terms and conditions.
In short, yes, there are limits, but they are almost never seen in practice - they are just there to protect against abuses.
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