one of the most popular free ones I know of is http://www.webs.com/
One of the down sides is you get advertisements on the site that you have no control over. But its free to you. The advertisements is what makes it free.
I made myself one a while back for my shop: http://superiorpowerequipment.webs.com/
It is primarily just something to do at the time just to see how easy it was. And it is easy. You are limited to several templates that are not the best but it gets you going.
I have since made a different forum (link in my sig) and no longer use the one on the above website.
There are many different options for website hosting if you choose to not go with a free one. I personally use 1and1 (http://www.1and1.com/?k_id=20235909
). They always have good special offers and even their regular pricing is great! 1&1 gives free domains with every hosting plan, easy site building tools, free valuable software and even free search engine advertising vouchers to promote your site with. Definitely worth taking a look at. These guys host over 5 million websites and have been around for a very long time. I have heard numerous complaints about godaddy.com and personally will avoid them and would not touch them with a 10 foot pole.
When it comes to actually making your website, I know there are some good templates you can download from gopherforum (ask Steve how). The templates I have seen are professional looking and I would highly recommend them.