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/Peo, FreeWebSpace.net
How much space do you need? I am offering free hosting with 50MB space and 1GB bandwidth but there will be google ads on your pages. You can see my site here: http://www.xtremesite.com. It is not complete yet but the hosting server is running fine. Just moved out of imhosted.com.
Next time use an enom reseller or opensrs reseller because they allow you to create your own dns instantly. Been using opensrs reseller for a long time. Their system is great. I recommend 000domains.com
You have the money to buy the software to run a free email service but none to buy hosting? I am guessing you will provide free emails with a script called Hivemail or Socketmail. And 30mb of space how do you even give out people the space for email storage?