Lycos didn’t and they were very restrictive on the running of Joomla. It took all sorts of fiddling with .htaccess to get joomla to work with them. Fortunately, they don’t do hosting anymore.
I had similar problems with 1&1.co.uk who have a strict 2MB max file upload limit and a couple of other settings that are a right royal pain in the arse. There are others too that I have used in the past.
