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I don't know of any good free webhosts, but I have been using hostgator for a few years now and have not had any problems with them. I think their first tier package is only $5 a month. Honestly the free hosting route is a pain. There's always something being changed or pop-up ads forced on your site, not to mention instability problems. I stopped using free sites because of the hassles and am very happy now with the paid hosting. As far as your domain, you should be able to have it point to wherever you want thru your domain.com control panel I would think. Not transfer... just forward it or redirect it.
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