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/Peo, FreeWebSpace.net
IMO Google checkout is better as it charges only 1.5% credit card processing fees also paypal will be the same if your monthly receipts in paypal goes above £50k whereas you 2Checkout charges more.
You can consider booking domains is my hobby.... whenever i get some good domain name which may have potential i try to grab it. I dont think it as a investment rather i try to get them, develop them and may sell them for good price ;)
What you pay is what you get.....if you go for cheaper domain registrar you may get CHEAP service, after all Domain name is your identity and is the matter of concern. Difference of 1-2 $ / year should not a big issue to think over it.
As you are having huge traffic why don't you get into banner advertisement by charging few $$ for a month, there are thousands of webmaster who always search for such heavy traffic forums where they can advertise about their site/service.
IMO just forget PPC and get into Banner advertisements...
Today, Webhosting business is much more competitive, you should study your market before investment. Initially you will have to reduce extra expenses and will have to concentrate on getting more visitors and conversion. you can start with some fantastic offer such as " buy 1 get 1 free " lol...
Yeah, even most paid hosting service provider wont allow you PROXY hosting on their servers, i dont think you will ever get any free host allowing PROXY Hosting. For your hosting requirements you will have to consider PAID Hosting and not FREE HOSTING ;) may be someone can offer you hosting...
Honestly i will never rely on FREE HOSTING services rather i will look for cheap paid hosting package, you can hope and can keep faith on your host ;)
I had very bad experience using FREE HOSTING service :(
You can get normal/small hosting plan for few dollar/year so why to run behind FREE...