Dear Clint,
I’m only answering as I see no one else has – but my knowledge about the matters is almost as limited as yours.
I looked at your host package and I see they have PSP, but I didn’t see mySQL, which is also necessary. Then again, I think it’s so basic that surely they have it? I noticed it’s Amsterdam-based. I’ve been with a Dutch webhost myself, for years (being Dutch) and they definitely do support wordpress and, I think, are a bit cheaper than the one you looked into. It is found at webreus.nl. Also, the fact that biohost did not reply to your questions is dubious. Webreus did, when I asked them the same thing.
Self-hosted simply means you find a webhost, like biohost or webreus, and put your blog there, instead of at wordpress.com (as distinguished from www.ads-software.com.) At wordpress.com, you get hosting for free.
Hope this helps, Clint.
Charlotte
P.S. There’s a simple wordpress installation procedure at webreus – even I succeeded with it. However, they place your blog in a folder called /wordpress, unless you do something clever. And this is something they don’t provide support for; you have to fix that, yourself. (With me, they correspond in Dutch – not sure whether they do English, too.)