You probably know that Microsoft is offering to all US and Canada users a free hosting account called Microsoft Office Live Basics.With this free account you get:500MB Storage, 10GB/month transfer, 2GB E-Mail, Daily Backups. Also you get:Free domain name and hosting; Easy-to-use Web site design tool; 25 e-mails.Storage and data transfer; Web site traffic analysis and reporting tools.Additional features are available for a fee.I found a coupon so you can start to advertise your new site for free with $50 Free credit to Microsoft AdCenter.
You can find more information at Microsoft Office Live homepage.