I would just like to verify that we are allowed to develop, and host facebook applications. On our hosting here at frihost?
yeah it's allowed. The server probably won't even see the difference between a facebook app and a normal webpage.
@ankurthakur, it's the same as for the websites. The server should be able to handle all the accounts/websites on it and if one website (or facebook app, although in practice it's actually still a website) takes all the resources and causes problems for the other websites then I have to act somehow.
If you aren't doing anything malicious or against the rules (eg warez, copyright infringement, spam, ...) then you won't be banned and your account won't be removed either (unless you are inactive and your points are very low - but that's a different story then). If I have to because an account is taking down the server, then that (hosting) account will get suspended. Otherwise I create an Alert (AWIT) stating that you should lower the server load or move the domain elsewhere in some reasonable time. (This doesn't happen often, usually it's either a hacked account or an overspammed forum that is causing a high server load/server downtime.)
You can always try to make the app usage of the server fast by trying to limit the MySQL queries and make them fast. The less resource intensive it becomes to handle a single user, the more users you can have.
But really, first try to focus on creating the app and app backend while just taking in mind that you should keep the queries/pages small/fast. And if you do that it will probably take a long while before it becomes too popular and causes too much server load. And by then you can probably already monetize it by ads or Facebook coins and hire your own vps/server for it.
did the app work at the end? if so please send me a pm (if you don't want to advertise it in a response) so that I can check this.