I had this EXACT SAME issue once before,
and I did what your about to do.. and upgraded to dedicated. A dedicated I kept for years and never really used.
BUT,
it turns out that the problem was from one of my traffic providers, which was causing the apache to overload with "too many visitors at the exact same time", because the traffic was being dumped all at once due to an error, instead of being pieced out.
I'm not saying that is your problem, but perhaps there is a slight chance it is.
Turns out that I DID NOT need the dedicated server at all, that I just needed to resolve the traffic issue I had loading too many simultaneous users at once.
I'm going to go against the grain here and say VPS should be able to cover it unless it's a really heavy script, as I was pushing 15k uniques an hour with no problem.
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10 years of experience in:
CHAT SALES - PAID TRAFFIC - CONVERSION - CREATIVES - CONSULTATION
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