imo dont mess around - pay for it! it doesnt cost that much really - around $120 au a year you can have 4 gb of webspace and 100gb transfer/mth !!!!! with TONS of goodies :-) Myself and some friends have accounts with these guys - so far, they are awesome - mirror servers the works. its in the U.S. - but that makes no diff on the net of course - service is excellent

- its so good its scary - redirect included in cost - i could go on - you could host at least 20 decent sized sites. maybe you could pool monies?
i havent finished moving the southern-x site properly to our bluehost account quite yet - soon - I am very lazy sometimes -
http://www.bluehost.com/
ps for domain names i recommend planetdomain
http://www.planetdomain.com/ very cheap

get that there first rather than go thru bluehost for domains - they will try to sell you their service