Domains are really cheap nowadays, however finding the right hosting provider which offers reliability, adequate space and features you need at a reasonable price can be tricky (I’m happy with my current host though ;)). Google now offers to handle your hosting and email for your domain for free via Google Apps for Your Domain which could be handy if you’re still in the process of selecting a web host.
I’m using it for email accounts on the spherebox.com domain and it has alleviated the need of space on my hosting server. The mail interface is similar to Gmail, so if you’re comfortable with using Gmail, you wouldn’t have any issues with using this. Page Creator is the application with supports the creation and hosting of web pages, however I have not tried this out.