The 1g of ram should be fine. A company I help with originally had a bare minimum vps with 20g of space. The next tier up or 2 is generally better. However you might be fine depending on scale.
They ignored my warnings of an impending crash due to lack of space I reported for over a months could no longer ssh in and upgrade.
Took them a week or two to get it fixed after the crash.
as @simon said it sounds like a setup issue in your dns records.