Just a summary about this issue.
Because we share a sever with potentially hundreds of other sites there is always the threat that one of those sites could infect ours or that the server would be blacklisted because of attacks originating from this server. Some of our internal files were briefly compromised but any attacks were primarily the result of other parties on this server. At no time were any users of this site in danger of any malicious software or code.
The only way to prevent this in the future is to move to a dedicated host which can range from $40-100 each month. Unfortunately thats just not economically feasible unless someone wants to make a massive donation.
We've never had a problem like this in the many years this site has been up so I think its ok to continue operating like normal. We can look into changing host but I am quite happy with our current provider especially since they were very quick to fix the problem and help us out.
Glad to have things back to normal