http://www.atspace.com/

I signed up with these guys a few months ago and have been very satisfied with their free service. When I signed up there were no ad banners, but im not sure if thats still in effect. They offer:

» 50 MB Free Web Hosting
» Free UNLIMITED Traffic
» Free Domain Hosting
» Free Subdomain Hosting
» Free DNS Server
» Free FTP Hosting Account
» Free POP3 Email Account
» Instant Account SetUp
» Web Based File Manager
» Easy to use Control Panel
» Reliable RAID Backups
» Stable Hosting Platform
» Super Fast Servers
» Reliable Data Center

I hope someone finds this useful. Good luck.