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1. I dont know anyone who does it for free but www.fractix.co.uk are stupidly cheap for hosting. If you need a simple website sorting out and happy to put a donation to my charity contact me. Chris www.teech.org - raising money for Falesti Orphanage and School
2. People aren't really lining up to provide you with free services. Domain name registration is on the order of $7-$15 a year - no freebies there. cPanel hosting costs vary greatly depending on bandwith and services you need - I've never heard of a free one, though Google Apps can provide you with some of that functionality for free... it's really stripped down though. You're best bet for free designs is oswd.org - free CSS/HTML templates. They're really good. You're not getting custom work for free though.