How to set up a free website — really!
Webs offers a free website with a drag-and-drop interface that lets you build your site easily. However, you will have to pay $50 or $60 a year for your own domain name (URL). Still a good deal.
Webmium offers a free website. The catch: they only allow a few hundred visits before they start charging. This might, though, be a great choice for, say a family reunion website that won't get that many visits anyway.
How to set up a free one page website
If you only need one page (for example, you're a social worker or a massage therapist who needs a simple web presence), you can get a web page for about $12 a year on www.GoDaddy.com . They offer a free one page website if you register your domain (website name) with them. 123-reg offers the same deal in the UK.
How to set up a free blog
If you want to to share your interests, you can build a subject-based "lens" on Squidoo. It's sort of like a blog, but also offers you building blocks of your own to add videos, polls, news headlines, links to other websites and more.
How to set up a free store
freewebstore offers a free basic online store. They make their money selling extra services. There are also several companies, such as ravox.com and http://sellmojo.com/ that will let you set up a free store on Facebook.
*See What is a Domain Name? for an explanation of domain names