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Re: The phoenix is down but not out.
I use 1&1 and am very satisfied with it. Total cost for web hosting with domain name (gaetanmarie.com) is 23 euros per year IIRC. In my experience, it's worth it. My past experience with the Yahoo! Geocities server and other free servers was lousy: you have to cope with ads you can't control (and which won't give you any money) and the bandwidth is ridiculous.
What you're describing (reasonable-sized site, medium bandwith need, etc.) should not be very expensive.
Another advantage IMO is that you can have several subdomains as well, to post other websites. That's what I'm doing with mustang.gaetanmarie.com and ghostgrey.gaetanmarie.com : I didn't want to pay for another hosting account so I just created subdomains.
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