Hello,
Yes, any NEW hosting accounts setup at Hands-on are compatible with the Magento Software. This was effective as of January 1 2008.
Prior to January 1st, MySQLi (a required component of Magento) was not installed on our shared servers. We have been testing, and have configured all NEW servers with the MySQLi option, however at this time we have not implemented this module on previously hosted accounts due to compatibility concerns.
More information regarding Magento Commerce software can be found at
http://www.magentocommerce.com