Personally i have created 10 websites and 1 blog so far and I've used Synthasiteto create all of them for free. There are numerous sites that provide the same service but i like Synthasite and the way it works. Its user friendly and pretty straight forward to creat really nice professional looking sites in a very short space of time. You can add html code wherever you like and there are loads of templates to give you just the look you're going for!

Some other free website services include Google Sites, which can be accessed from your iGoogle account or just open one up for free, I've tried Google pages myself but you cant place Google ads on a Google site so i chose is another one, I've never used it or even signed up for an account but it looks really good from first impressions! Another good one I've heard about but also not tried yet is Weebly. Other useful tools you can add to your website or blog are custom toolbars from Conduit and Alexa and you can also add a Digg button, from Digg, to your site or blog so people can add it and say they digg it on the Digg website database, a great marketing tool!