I happened across http://www.doteasy.com just now, and fount the site pretty interesting.

Here is what they offer:

No Setup Fee
No Monthly Fee
Domain Name Hosting (www.yourname.com*)
20MB of Free Web Storage
Unlimited FTP Access
1GB Monthly Traffic
10 Email Accounts
Unlimited Email Alias
Email Forwarding
Email Autoresponder
You can get all these services free for life after paying a $25 (US) domain registration fee.
Their homepage loaded fast, and they seem pretty good, but something about it isn't rubbing me right. I didn't get a chance to read the FAQs or TOS, but I am curious what everyone thinks.